Here’s the silver lining for stocks if Democrats ‘sweep’ November election

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Who wins the White House matters less than a united victory, says Danske Bank. “Where we differ... is the impact on equities in case of a Democratic sweep, which we believe could turn out to be positive for U.S. equities due to fiscal expansion.'

Investors may be happy to see the back of September, which is stacking up as the worst month since March for the S&P 500 SPX, +1.44%. That is as the five biggest technology-related stocks — Facebook FB, +0.47%, Apple AAPL, +0.92%, Amazon.com AMZN, +1.14%, Netflix NFLX, -0.88% and Alphabet’s Google GOOGL, +1.01% — are together, poised, for the weakest monthly stretch on record.

The prevailing investor wisdom has gone something like this: stock markets fear a win by Democratic candidate Joe Biden because he’ll hike corporate taxes to pay for more fiscal spending. But a win by President Donald Trump — should he take both the House of Representatives and Senate — means a rally for equities, due to potential tax cuts.

That is because, even in a sweep, Democrats would at best win a slight majority in Congress, so it is reasonable to expect higher spending won’t completely be offset by higher taxes. Harr says it is doubtful that Trump will manage a clean sweep, even if he wins. Devon Energy DVN and WPX WPX shares are climbing after the energy companies announced a merger of equals in an all-stock deal valued at $12 billion.

 

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Marketwatch has become the CNN of the financial press....just a rag these days.

...very small-minded... NO thoughts about what CCP Expansionism and/or Islamism may do.....

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