Why stock-market investors should fear a 2020 election ‘sweep’ most of all

Investors worried about how the stock market will react to next year’s federal elections shouldn’t take their cue from the presidential horse race alone.

That’s because “fear of such a unified government outcome on Election Day 2020 is substantial at the same time that confidence, so very important to markets and economies, remains fragile albeit stabilizing,” Emanuel said in a Sunday note. Survey data and other indicators show chief executives remain wary of the futures and hesitant about planning, particularly with regard to capital spending, as the trade wars have taken “both a psychological and a real toll on businesses,” he said.

Goldman Sachs said it expects the bull market in U.S. equities to continue in 2020, with a durable profit cycle and continued economic growth set to lift the S&P 500 by around 5% to 3,250 in early 2020. But rising “political and policy uncertainty” will keep the index rangebound for most of 2020, they said.

Tim Moe, Goldman’s chief Asia-Pacific equity analyst, in a Bloomberg interview, spelled it out more directly, warning that the prospect of a rollback of the 2017 corporate tax cut by a unified Democratic government could spark “possibly even up to a 20% correction on the S&P.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Your three-stock survival kit for 2020 — packed by Nuveen’s top stock-market strategistOur call of the day from Nuveen’s equity strategists says investors need to brace for a coming year that won’t top the 20%-plus gains we’ve been seeing. The... You don’t need any stocks! It’s the end of the business cycle and politicians, corrupt governments, and central banks need to monetize this insurmountable debt. What does this mean? QE4. Buy physical gold and silver! The way the democrats scare people everyone won’t be buying anything once again in an election year! College is going to be free, Green New Deal, free income, Free Healthcare & more taxes that is just going to be less spending including job hiring but they don’t care just power! BUY BITCOIN!!!💪🏻💪🏻💪🏻💪🏻💪🏻
Source: MarketWatch - 🏆 3. / 97 Read more »

Next recession timing is spring 2020, cause will be rare, SocGen says - Business Insider'We see a springtime recession': A Wall Street firm that is counting down to the next crisis says its trigger will be unlike any in recent history The crash and recession will happen if any of the Democrats start to look like serious contenders against Trump, similar to what happened with Obama in 2008. If the worker is not paid a wage which allows them to pay for living expenses, savings and luxury items then money will not flow through the economic system. The wealthy certainly are not going to spend their own money.
Source: BusinessInsider - 🏆 729. / 51 Read more »