But the stock markets are not concerned about this. On the contrary, they assume that there will be a happy medium in the near future and they can live with that. Because that means that the sharp edges of Biden’s policy, which are somewhat less favorable for the business community, will be brushed off. “The tax cut that Trump has implemented, for example, cannot be reversed immediately,” says Simonts. Biden wanted to raise the corporate tax rate back to 28 percent after Trump lowered it in recent years. “In that sense, the color of the stock market is mainly determined by the color of the Senate,” says Simons. “A red Senate will be inversely proportional to the color of the stock market, because a Republican majority will play a dampening role. For example, there will not be too many extra rules for companies. ”
“Healthcare stocks, on the other hand, celebrate that additional pressure will not come soon from an expanded ‘Obama care'”, says Luc Aben, chief economist at asset bank Van Lanschot. “The fight against high drug prices will be less fierce with a Senate dominated by Republicans.”
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