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Originally Posted by Why_Yes_I_Do
Looking to rebalance portfolios ahead of the election for maximum traction. Guessing history repeats itself where Trump victory equals stratospheric rise (unlike what all of the prognosticators predicted on the LSM) versus totally tanks if Joe-mentia wins.
How are ya'll preparing your stocks? 
Regardless, the Antifa-gs will still do their cry-baby BS and burn their own cities down. I'm sure that will make it in to the sequel. |
My political view is different from yours. I think there's a 70%+ chance it will be a Democratic sweep. Upper income taxpayers should be trimming positions in which they can realize long term capital gains, as Biden wants to tax long term gains at federal rates up to 43.4%. The current maximum rate is 23.8%. If you fall into this category, and if you own shares where you have big gains, you should consider selling now. You can can buy other stocks, or wait 30 days and buy back what you sold. That's probably a no brainer.
Avoid oil and gas companies. Those that have significant debt and production from federal lands will go bankrupt during his administration if Biden does what he says he will. Others will do poorly.
Actually maybe you should just sell everything. When he raises corporate taxes theoretically the value of everything should go down, because corporate profits will be lower. Heavier handed regulation will decrease profits too. Supposedly recently long term interest rates have been headed upwards because the market believes the Democrats will win, and induce inflation through excessive fiscal stimulus. If that trend continues, in the longer term look for stocks to sell at lower price/earnings multiples, as investors move money to fixed income investments that will be paying higher interest rates. Lower corporate profits + lower price/earnings multiples = lower share prices.
Chinese exporters will do better if Biden follows through on his instincts and gets rid of the tariffs. A lot are listed on the Hong Kong Stock Exchange, and can be bought through some U.S. brokers.
In summary, SELL SELL SELL. Except for Chinese companies.
Stock Market Deja vu all over again
