Two-thirds of Wall Street investors believe the stock market will fare worse under President-elect Joe Biden than under President Donald Trump.
A survey conducted by financial news network CNBC which questioned dozens of insiders, strategists and traders on Wall Street, say they believe stocks will see a far lower return in the next four years compared to the 60 percent rally they have undergone since Trump took office in January 2017.Â
The findings reveal mixed feelings among Wall Street traders with only 33 percent stating they believe stocks would be ‘better’ under Biden than Trump mainly due to the president’s corporate tax cuts which led to increased profits.Â
That said, out of those surveyed, despite a lower performance overall, the insiders still believe the market will continue to rise and 2021 will finish at a new high with the Dow closing above 35,000. It is currently at 30,400.Â
Only a small proportion (five percent) believe the Dow will reach the heights of 40,000 by this time next year.
Ten percent believe the Dow could go in the opposite direction and finish 2021 below 25,000.Â Â
A third also stated they believe Bitcoin will gain renewed traction next year to become the hottest new investment in 2021 with the crypto-currency becoming more acceptable among market-watchers.
The main reason for such a cautious outlook is in part due to Biden’s tax plan which will see corporate taxes rise from 21 percent to 28 percent and a 15 percent alternative minimum tax to apply to corporate income higher than $100 million.Â
Trump’s 2017 tax cuts are not set to sunset until 2025 and will require congress to act if they are to be reversed.Â
‘The central banks are not going to give up their control over monetary policy. That’s just not going to happen. The Fed will not give it up, the Bank of England will not give it up, the ECB will not give it up, the Bank of Canada and the reserve banks of New Zealand and Australia, the People’s Bank of China, they’re eventually not going to want to give up monetary authority. And that’s just a given,’ said Dennis Gartman to Fox Business.Â
Gartman also warned investors to be wary of cryptocurrencies predicting a fall of between 40 and 50 percent should regulators step in.