Displaying items by tag: democrats
Bernie Sanders has just made his big pitch to America’s Millennial generation. The candidate has vowed to eliminate all student loan debt for both undergraduates and grad students, and make all future tuition free. To fund the $1.5 tn write-off, he is planning a new tax on stock, bond, and financial derivatives trades which he forecasts would bring in $2.4 tn over a decade. One of the things that differentiates this plan from others, like Warren’s, is that it will eliminate all debt, not just that of the lowest income borrowers.
FINSUM: This is an interesting plan from a strategic perspective because it not only appeals to the left and the young, but also the richest of the young because it would eliminate all debt regardless of income. This point has brought criticism from some Democrats.
Barron’s has published a piece which covers a survey of wealthy Americans. The survey sought to find out how the wealthiest Americans felt about Senator Elizabeth Warren’s plan for a wealthy tax of 2-3% on those with over $50m or over $1 bn in wealth. The results were surprisingly, with 60% of wealthy respondents saying they would embrace the plan. The feedback was split on party lines, with 88% of Democrats agreeing, 62% of independents, and 36% of Republicans in favor of it.
FINSUM: We are somewhat skeptical of these stats. Advisors, please email us with any anecdotes on how your clients have reacted to this plan.
The 2020 presidential election is still about a year and half away, yet a large number of investors have already made changes to their portfolios based on potential outcomes. Some 40% of investors say they have adjusted their portfolios because of the upcoming election, according to a recent survey. The reality is that investors are worried about a Democratic sweep of the presidency, House, and Senate, which could mean a serious rollback of Trump-era policies, including tax cuts. “If Biden continues to poll this well into the beginning of next year ahead of the primaries, he is gonna start to have some negative effect on the market”, says Tony Roth of Wilmington Trust.
FINSUM: We can’t help but agree with that last assessment. That said, we think negative effects will be slow and steady, not sharp moves.
A new poll of professional money managers has just been released, and the study shows that they think Trump is going to win in 2020. Amazingly, 67% of professional money managers say Trump will win the election versus just 28% who believe the Democratic candidate will win. What is eye-opening is that many polls outside the financial industry show the Democrats leading. Managers also scored the performance of Trump and the two chambers of Congress. Trump got the best grades of the three, but none of the scores were high.
FINSUM: This does not surprise us. All our business, both as it concerns publishing and advertising, is with professional money managers, and the one thing we know for sure is that the president has a very strong following in this community.
The reality of the political environment in the US is making one thing very clear: it is a tentative time to buy or own healthcare stocks. While healthcare companies are currently performing well, the market is growing increasingly bearish about them, and with good reason. Democratic candidates have proposed an array of new national healthcare plans that all have degrees of disruption, some of them massive, to the status quo. That means the healthcare industry is facing a problem that is very hard to control and could cause extensive changes to their current operating paradigm.
FINSUM: Unless healthcare gets so beat up that it is worth taking a risk on the stocks just as a bet that the Democrats don’t win the election, it seems like there is asymmetric risk reward in the sector right now.