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How do you think the election may affect the stock market?
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If Harris is elected president, the U.S. stock market could be under long-term pressure.

Although some of Kamala Harris's policy proposals may benefit specific sectors in the U.S. stock market, such as cannabis-related stocks, overall, her economic policies are bearish for the broader U.S. stock market.
If Harris is elected president, the U.S. stock market could be under long-term pressure.

Below are some of Harris’s key policy proposals, which stand in stark contrast to Donald Trump’s:

Raising Corporate Taxes: Harris plans to raise the U.S. corporate tax rate to 28%, which would negatively impact most publicly traded U.S.  companies by reducing corporate profits, lowering the potential for dividends and stock buybacks, and decreasing valuations.

Promoting Antitrust Measures: Harris appears to be even tougher on antitrust issues than the current administration, or at the very least, would continue the current administration’s antitrust agenda. This would negatively affect tech giants like Nvidia, Microsoft, Apple, Google, Amazon, and Meta, which have been major drivers of the U.S. stock market bull run. Google is already facing significant antitrust litigation pressure, with rumors circulating about a possible breakup. If it comes to that, it could lead to a stock price crash.

Tax on Unrealized Capital Gains: Harris proposes taxing unrealized capital gains for individuals with a net worth of over $100 million. Up to now, U.S. capital gains taxes are only levied when assets are sold, and they are exempt from taxes upon death. If unrealized gains in securities accounts are taxed, stock prices will struggle to rise significantly, as the wealthy would be taxed on their unrealized capital gains during price increases, potentially forcing them to sell stock to cover taxes. These individuals are often long-term holders of high-quality stocks. Taxing unrealized capital gains would place continuous selling pressure on blue-chip stocks.

Opposing Trade Barriers: Harris is against trade barriers and high tariffs. If the current U.S. tariffs are lowered, considering the high labor costs in the U.S., some domestic manufacturers will find it difficult to compete with low-cost goods from overseas.

Limited Policies to Reduce Unemployment: From the policies Harris has announced, there are few strong measures to significantly lower unemployment. With the continued influx of illegal immigrants into the U.S., the unemployment rate may rise, which could be interpreted by the market as a signal of an impending recession, creating a bearish outlook for the stock market.

Tesla's Risk: Due to Elon Musk's strong support for Trump and his attacks on Harris, if Harris is elected, there is a possibility of political retaliation against Musk, becoming a 'Sword of Damocles' hanging over Tesla investors.

Harris’s policy proposals are not merely a temporary bearish signal for the market, but they would have long-term, substantial negative effects.

Due to the increasing political polarization within the U.S., the probability of extreme events occurring during the election period is not low, which is likely to cause extreme short-term volatility in the stock market.

Given the uncertainty of the election outcome, it is not advisable to take a blindly bullish stance on the market, where current P/E ratios are already high. It is important to mitigate risks and implement proper hedging strategies. However, for aggressive investors, the stock market's high volatility during the election period could present profit opportunities.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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  • Tonyco : Raising Corporate Taxes: Harris does plan to raise the corporate tax rate to 28%. This would likely impact corporate profits and potentially affect dividends, stock buybacks, and valuations. However, the exact impact on the economy and stock market is debatable.
    Promoting Antitrust Measures: While Harris has expressed support for antitrust enforcement, there's no clear evidence that she would be "even tougher" than the current administration. The statement about potential impacts on tech giants is speculative.
    Tax on Unrealized Capital Gains: Harris does support taxing unrealized capital gains for individuals with a net worth over $100 million. However, the claim about continuous selling pressure on blue-chip stocks is speculative and not supported by evidence.

    Opposing Trade Barriers: There's no clear evidence provided to support this claim about Harris's stance on trade barriers and tariffs.
    Limited Policies to Reduce Unemployment: This statement is speculative and not supported by evidence from Harris's proposed policies.

    Tesla's Risk: This is purely speculative and not based on any stated policy or evidence.

    Long-term Market Effects: This conclusion is speculative and not supported by economic consensus.

    Election Period Volatility: While elections can cause market volatility, the statement about "extreme events" is speculative.

    Market Outlook: The advice about investment strategies is opinion-based and not factual information

    Summary:  No evidence any of your doomsday scenarios cause any kind of bear market

  • Ultratech : record all time highs under biden. this won't change with her.   trump he lashed out frequently at big tech and I'm terrified of him as an investor. terrified. idk who needs to hear this but he lit the inflation fuse and ran and it took years to fix.

  • leap89 OP Tonyco : 你说的话没有任何证据

  • leap89 OP Ultratech : 股市在特朗普任期内的涨幅超过拜登任期,通货膨胀也是在拜登任期内发生的

  • Ultratech leap89 OP : ya i forgot you guys have putin propaganda over there I'm sorry. the devil has his hands over your eyes

  • leap89 OP Ultratech : 普京没办法在俄罗斯以外做宣传,而且他不是股票分析师,看来你并不知道普京的职业。没有证据表明他有股票从业经历

  • Ultratech leap89 OP : why would you think trump is good for America.  you have no idea how ppl act here on a local level. Trump supporters are very dim witted towards family friends and coworkers. spreading lies

  • leap89 OP Ultratech : 特朗普上任期间,美国股市的平均年涨幅是最近20多年来最高,这才是投资者关心的。你为什么会认为普京是股票分析师?