Why one bank says the best election outcome for stocks is more of the same

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Strategists at French bank Société Générale see a 32% chance of a clean Democratic sweep in the November election. The second most likely outcome is a Joe Biden presidency with a Republican Senate, to which the analysts assign a 30% chance.

President Donald Trump and House Speaker Nancy Pelosi aren’t exactly the best of friends. But to strategists at French bank Société Générale, they are the best combination of leaders if the goal is the highest possible stock market.

Taxes would be a clear area of differentiation, with Biden pledging to hike corporate taxes, as well as considering increases on income taxes for those making more than $400,000. The SocGen analysts don’t expect Biden to reverse Trump’s tariffs, but at the same time they expect him to refrain from introducing new levies.

By the end of 2022, the S&P 500 SPX, -0.37% would be 14% higher under a Trump administration with a Democratic House than under a Biden administration with the Democrats in control of the House and Senate, SocGen estimates. Nike NKE, +8.26%, a component of the Dow Jones Industrial Average, jumped 12% in premarket trade after it reported stronger earnings and revenue than forecast, thanks to demand for footwear. Rival sportswear makers Adidas ADS, +4.89% and Puma PUM, +3.73% rose in Frankfurt, as did Under Armour UAA, +6.18% and sneaker seller Foot Locker FL, -0.57% in premarket trade.

 

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SoGen has never been good with numbers.

So Biden has a 30% change, Trump 70%

This is BS. Do you realize that majority of people do NOT participate in polls or speculation?

What are thou smoking?

Biden has said he will increase the Corporate tax rate to 28% which S&P believes will be a $7Billion/yr negative hit to the Top 10 US Banks. Doubt Biden wins, but that’s a Consensus pick given polls heavily in his favor... but I suppose anything is possible. $XLF

This reminds me of when they predicted Hillary was going to be president 😂

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