There are only five weeks left until the US presidential election, and nervousness among investors is growing. Shares on the New York Stock Exchange strengthened on Monday, but did not close the losses in September.
According to a survey by the consulting company deVere Group among institutional investors, the financial markets are not so nervous about which of the candidates for the position of US president will win, but about the possibility that the name of the winner will not be clear long after the election. Markets are more or less anticipating that corporate taxes are likely to rise if Democrat Joe Biden succeeds. However, their increase could also be offset by an increase in government spending.
In addition, investors are convinced that even if Biden controls the White House, he will not be able to push through a drastic tax increase in Congress. The survey revealed an expectation of an increase in the tax burden on companies from the current 21 to a maximum of 28 percent. On the other hand, if Donald Trump wins, he probably won’t avoid raising taxes either. For financial markets, the situation is so much worse when the winner would not be decided weeks after the election. Such a situation is possible in the case of a close result of the public vote.
