• Thu. Sep 24th, 2020

Dimancherouge

Technology

Bank of America has a complete guide to how stocks like tech could trade following the election

In this combination of file photos, former Vice President Joe Biden speaks in Wilmington, Del., on March 12, 2020, left, and President Donald Trump speaks at the White House in Washington on April 5, 2020.

AP

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The November election is shaping up to be the most contentious in recent history, and there’s a lot of money in the stock market riding on the outcome.

It’s widely viewed that a Joe Biden presidency could spell headaches for Wall Street in the form of higher taxes, while president Donald Trump’s tough stance on trade can continue to pressure corporate profit margins. For many investors, the 2020 election could determine where to lay their bets after the stock market’s painful round trip this year caused by the coronavirus pandemic.

“The upcoming election may be a real departure from the norm in that it is occurring in the midst of a global pandemic,” Savita Subramanian, head of U.S. equity and quantitative strategy at Bank of America, said in a note. “The Congressional makeup will determine the ease of passage of key platform proposals.”

Subramanian and a team of analysts took a deep dive and broke down how various industries and sectors will fare under four election scenarios — Biden win with split government, Democratic sweep, Trump win with split government, and Republican sweep. 

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