When Democrats are in control of the White House and Congress, there are three factors which cause stocks to be slightly less intrinsically valuable than when Republicans are in control. (This is true on average, not always, and there are many counterexamples.)
1. Companies will be less profitable due to slightly less favorable laws.
2. Profitable companies will have to pay more taxes.
3. Investors will have to pay more taxes on their gains.
All three reduce the intrinsic value of the investment, although the impact isn't huge, given that the party may only be in control for 2 or 4 years.
1. Companies will be less profitable due to slightly less favorable laws.
2. Profitable companies will have to pay more taxes.
3. Investors will have to pay more taxes on their gains.
All three reduce the intrinsic value of the investment, although the impact isn't huge, given that the party may only be in control for 2 or 4 years.
Tags: politics
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