What the Trump vs Harris Economic Visions Mean for Investors
The contrasting economic policies put forth by President Trump and Vice President Harris could have major implications for investors heading into the 2024 election. Here's a look at some of the key considerations:
Taxes
Trump's plan to extend the corporate tax cuts from 2017 would likely be a positive for companies and their investors by allowing them to keep more of their profits. Harris's proposed corporate rate hike to 28% could decrease earnings and weigh on stock valuations.
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Trade
Trump's hard-line stance and tariffs on trading partners like China have injected uncertainty into global markets. A continuation could further disrupt supply chains. Harris indicates she would take a more predictable, multilateral approach on trade that may provide relief to investors.
Housing
Harris's homebuyer tax credit could stimulate the housing market and be a boon for homebuilder stocks and residential real estate. But some economists warn it could overheat home prices.
Manufacturing
Companies in the manufacturing and industrial sectors may fare better under Trump's protectionist trade policies. But Harris's incentives and investments could elevate industries like semiconductors and renewable energy manufacturing.
Tech
While both candidates want to rein in Big Tech's power, investors may prefer Harris's policy approach centered on consumer privacy over Trump's threats of punishing companies for political bias.
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Immigration
A tight labor market makes Trump's hardline immigration stance a potential headwind for companies struggling with worker shortages. Harris's more immigrant-friendly policies could ease those pressures.
Energy
Trump's fossil fuel-favored policies would likely continue benefiting traditional energy stocks. However, Harris's renewable energy push could elevate clean energy investments like solar and wind.
Regulation
Harris's policy leans toward more robust regulation across sectors, which could weigh on company profits and stock performance. Trump favors deregulation which may give companies more room to operate.
Overall, a Trump second term may provide more near-term benefits to corporate profits through lower taxes and deregulation. However, investors may need to brace for market volatility from his aggressive trade policies. Harris could face headwinds in powering an economic boom through higher tax rates, but her policies on housing, manufacturing and renewable energy could elevate those segments over time.
YOU NEED TO WATCH THIS NEXT - CRITICAL
Immense New Energy Source To Repower America…
Energy is life.
This year, it could also decide the 2024 election.
With inflation still decimating the average family, with a recession looming, and with the stock market plunging, Kamala Harris and Trump are fighting over their visions for America’s energy future.