What’s ahead for investing in 2021? Will the Biden admin hurt equity stocks?
Over the next week we will be offering up our vision for what we see in the disruptor sectors of the markets and where we will be guiding our subscribers, looking to make some significant gains. Yes, there will be volatility, and yes, we will need to be nimble, but this is what we do.
For today, we want to have a look at what the administration change means for the equity markets, especially the technology sectors.
As we move on into 2021 there are certainly changes coming. The Trump administration is out, and the Biden team is moving in. No matter what your political slant, as investors, Trump was good news over the past four years. His administration made a number of changes that propelled the equity markets since 2016. That administration …
- Cut hordes of red tape, removing many regulations.
- Cut corporate and middle-class taxes.
- Renegotiated many trade agreements, in favour of the US.
- Brought a great deal of manufacturing back to the US.
There is no arguing the results for the economy. Unemployment in the US dropped to a 50-year low and for investors, the equity markets took off. Since Trump took office, the markets were up over 100%.
As we enter 2021, there is a whole new philosophy in the White House; we are going from a strong capitalist mindset to a strong socialist mindset. Biden himself is considered quite moderate versus many of the other Democrats, so it will be interesting to see how far they roll back the changes Trump put in.
But no matter who is in office, we see technology and biotechnology having an incredible year in 2021. We have breakthroughs happening in artificial intelligence and machine learning. We are in the early stages of bringing on neuromorphic computing, the most advanced computer science and information technology to the field of biotechnology. We will have extensive, inexpensive, effectively boundless computing power and storage.
We also have the implementation of ground-breaking wireless technology with 5G. Coming along with this is a complement of new technology applications that would have been impossible even just a few months ago. And the most exciting part is that this is all happening at the same time.
But if Biden does push through higher corporate and personal tax rates, which we expect he will, it will certainly have a negative impact on the economy, reducing consumption and most likely negatively impacting the stock markets. But then we saw the markets fly higher during the pandemic, so we will have to see where this goes.
Trend Disruptors is focused on hi-tech companies, those specializing in innovative technology, seeking to identify ideas that have the potential to DISRUPT a market sector and generate significant gains before the masses catch on. If a company offers a revolutionary product, service, or therapy, it won’t matter who is sitting in the White House, that stock will go higher.
If the Biden administration does raise corporate and personal taxes it will hit the general equity markets and we are likely to see some significant pull backs, if not an all-out correction. We have over 30 companies on our radar right now and if we do see a significant correction, it will present our subscribers with some great entry points in some very exciting, leading edge companies. We’ll be sure to keep subscribers posted when there is any action we need to take.
We started a new portfolio in November and it contains 7 open positions which are averaging +11.75% or +115% in annualized paper gains so far, not a bad start!
If you would like to join our growing group of subscribers, we are offering new subscribers an outstanding deal. Instead of the regular price of $599.95 for an annual subscription, you save $200 and pay only $399.95. Click here if interested.
For more information on Trend Disruptors, click here.
Stay tuned!