US Democratic presidential candidate and former Vice President Joe Biden speaks at a campaign stop in Johnstown, Pennsylvania September 30, 2020. — Reuters pic
That policy — which would likely be easier to enact if Democrats also win the Senate and retain control of the House — may push some investors to lock in gains ahead of December if Biden emerges the winner in the November 3 vote, fund managers said. On Friday, President Trump’s Covid-19 diagnosis triggered a sell-off in stocks and oil as investors moved away from risk assets. But many tech and momentum stocks are sporting healthy gains for the year despite a sell-off that pushed the S&P 500 down 3.9 per cent in September, its first monthly loss since March.
“The third quarter is usually weak, but when it is really strong, like it was in 2020, this says the rally isn’t over yet,” explained LPL Financial Chief Market Strategist Ryan Detrick.Selling ‘ahead of schedule’ “You’re going to see people selling things that they would be selling anyway, but ahead of schedule,” he said.
Personal income tax rates are more likely to affect the market’s winners this year, Cordaro said, while increased corporate taxes would most likely lower valuations across the stock market over the next year.