Investment bank says fears of effects of Warren presidency might be overblown
An investment bank in a report released Monday said the fears among Wall Street of the effects of a potential Warren presidency may be overblown.
RBC Capital Markets’s head of U.S. equity strategy, Lori Calvasina, said in a report the negative effects of Sen. Elizabeth WarrenElizabeth WarrenWarren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases OVERNIGHT DEFENSE: Joint Chiefs chairman says he regrets participating in Trump photo-op | GOP senators back Joint Chiefs chairman who voiced regret over Trump photo-op | Senate panel approves 0B defense policy bill Trump on collision course with Congress over bases with Confederate names MORE’s (D-Mass.) economic policies would be “temporary,” according to Bloomberg.
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“Any pain from a Warren win is likely to be temporary,” Bloomberg said Calvasina wrote in the report. “Most of the sectors at high risk under a Warren presidency from a policy perspective (Financials, Energy, Health Care, Industrials) are already deeply undervalued versus the broader market.”
The biotechnology, for-profit schools and health insurance sectors have developed concerns about Warren’s consumer-focused advocacy, the report said, according to Bloomberg.
Calvasina said in the report Warren could back environmental, social and corporate governance investments, and small caps may outreach larger stocks because of a lower effect from Warren’s policies.
Stocks would be negatively impacted by any separation of big technology companies, but retailers that couldn’t outcompete Amazon could benefit from the potential technology breakups, according to Bloomberg’s reporting.
“The stock market tends to go up over time, regardless of who occupies the White House,” Calvasina wrote. “Ultimately we think Corporate America and U.S. equity investors would learn to adapt to new political leadership, as they always do.”
Wall Street has voiced concern over Warren’s economic plans, with Democratic Wall Street donors even threatening to donate to President TrumpDonald John TrumpSenate advances public lands bill in late-night vote Warren, Democrats urge Trump to back down from veto threat over changing Confederate-named bases Esper orders ‘After Action Review’ of National Guard’s role in protests MORE’s reelection campaign if Warren is the nominee.
The Massachusetts senator has been soaring in the polls, competing closely with the main front-runner of the race, former Vice President Joe BidenJoe BidenHillicon Valley: Biden calls on Facebook to change political speech rules | Dems demand hearings after Georgia election chaos | Microsoft stops selling facial recognition tech to police Trump finalizing executive order calling on police to use ‘force with compassion’ The Hill’s Campaign Report: Biden campaign goes on offensive against Facebook MORE.
Warren has pushed for economic changes that work “for all of us, not just the wealthy and well-connected.”
I’m fighting for an economy and a government that works for all of us, not just the wealthy and well-connected. I’m not afraid of anonymous quotes, and wealthy donors don’t get to buy this process. I won’t back down from fighting for the big, structural change we need. https://t.co/nx7GczQhHl
— Elizabeth Warren (@ewarren) September 26, 2019
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