Some investors are betting the technology and communications stocks that drove a massive rebound in U.S. markets this year will face a tougher slog in coming months, no matter whether Republican President Donald Trump or Democratic challenger Joe Biden wins Tuesday's election.
"There will be a shift and it is starting, but it will take time," said Max Gokhman, head of asset allocation at Pacific Life Fund Advisors, which cut its exposure to large-cap tech in September to neutral from overweight. Hedge fund manager David Einhorn of Greenlight Capital, a longtime tech bear, told clients in a letter this week that tech stocks were in the middle of an “enormous bubble” that popped when the S&P 500 hit its record high on Sept. 2, 2020.
The Justice Department’s lawsuit against Google in late October marked the first time the U.S. government has cracked down on a major tech company since it sued Microsoft Corp MSFT.O for anti-competitive practices in 1998.An expected US$2 trillion stimulus package by Biden, who leads Trump in national polls by 10 percentage points, could enhance the appeal of out-of-favor stocks like construction equipment and materials companies, investors said.
Potentially higher taxes under a Biden administration are another worry. Biden has proposed increasing the corporate tax rate to 28per cent from 21per cent, potentially weighing on companies' earnings.
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »