Wall Street Prepares For A President Biden

Former U.S. Vice President and Democratic presidential hopeful Joe Biden makes a statement during an event in Wilmington, Delaware, U.S., September 24, 2019. REUTERS/Bastiaan Slabbers

Forbes: Wall Street Quietly Begins Warning About A Biden Presidency

With Joe Biden surging in the polls, Wall Street executives are preparing for a potential scenario where he becomes president—with some firms warning clients the stock market could take a hit.

The former vice president has a 10-point advantage over the president, according to a RealClearPolitics’ average of national polls and opened up commanding leads in swing states like Wisconsin, Pennsylvania, Florida and Michigan.

Biden even topped Trump in fundraising last month, while Trump’s approval ratings—amid the economic fallout from the coronavirus pandemic—have plunged to 39%, near the lowest levels of his presidency, according to Gallup.

The main concern for Wall Street if Trump doesn’t win reelection is the likelihood of higher corporate taxes: In December 2019, Biden pledged to roll back Trump’s signature tax cut legislation, which massively boosted corporate profits.

While often expressing more moderate views in public, many wealthy executives and investors privately supported Trump for his tax cuts and deregulation efforts; As some now prepare for a Biden presidency, it’s a noticeable change of tone for Wall Street.

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WNU Editor: Wall Street is looking at who will be the Vice-President in a Biden administration because that person will be the defacto next President. If it is someone like Senator Warren who promised huge tax increases on the wealthiest Americans coupled with her commitment to provide health care to all including illegal immigrants, you can kiss the stock market and your 401K retirement goodbye. I am also not buying the argument that a Republican Senate would block these measures. They have proven themselves in the past to be completely ineffective in blocking radical policies and measures from Democrat administrations, and I have zero expectations that they will change.