between the upcoming Biden Rally and Trump 2016, investors are holding their breath, Joe Biden's victory in the presidency means the collapse of the stock market, a phrase that we heard a lot by President Donald Trump, before The American elections, but things came in a way that Trump did not like, and the investors also had a different opinion.
US and global stock markets also greeted Democratic candidate Joe Biden's victory with great standing ovation, as the MSCI Global Equity Index rose to a record high and the Dow Jones reached a new historic high Near 30,000 points, even before the positive developments regarding Corona vaccines that Pfizer announced, followed by Moderna this week.
Global equity funds also attracted record cash flows of $ 44.5 billion in the past week that saw Biden win the US presidency and the promising results of the Corona vaccine.
* MSCI World Equity Index at record level *
But let us not ignore the fact that the stock market's first reaction to Biden's victory was mixed with positive news about an anti-epidemic vaccine. Rather, we can say that vaccine developments pulled the rug out of Stock implications of the 46th president of the United States won
Yes, the markets celebrated the victory of Joe Biden in the presidency, but the real test for the markets will be the coming days and weeks, while Donald Trump shows no signs of abdicating, and he sued Judicial appealed against the election results
* S&P performance in the last month *
From this standpoint, the long-term projections may give a clearer picture of what Biden’s victory means for the stock markets and even the various sectors in them?
and many believe that what Trump is doing now is to save face only and will not be long, so investors are now focusing on what Biden will do, and who will likely find himself. Without control of the Senate, while Democrats will keep the House of Representatives, reducing concerns about the Republican not blue wave that investors feared will bring many tax increases and stricter regulatory measures.
It is no secret to anyone that among Biden's plan was his promise to increase corporate taxes, which could have the largest direct impact on the stock market, as Goldman Sachs estimates that Corporate tax increases and social security tax hikes on high-income earners would lead to a 9% drop in the S&P Index
