Joe Biden President to Hit Risky Assets, Says Nigel Green

The Chief Executive Officer and Founder of deVere Group, Nigel Green has warned investors to ‘president-proof their wealth’ ahead of American election of November 3, 2020.

According to the CEO of one of the world’s largest independent financial advisory and fintech organisations, Joe Biden, Democrat former Vice President, looks the likely winner in November going by recent unofficial polls.

While President Trump’s position is no longer deteriorating, the Democrat presidential candidate has led in poll after poll in all the six core states of Arizona, Florida, Michigan, North Carolina, Pennsylvania and Wisconsin.

In an email to Investors King, Green said a Joe Biden president would hit risky assets, including the high flying equities.

He said “Understandably, news agendas and conversations across the globe have been dominated by the impact of the pandemic for the last five months.

“As such, it has been all-too-easy to forget that for investors the defining issue of the year was always meant to be the forthcoming presidential elections in the world’s largest economy.

“Whoever wins the keys to the White House – Trump or Biden – we can expect some major policy shifts which could affect investments, taxation, regulatory landscapes and corporate earnings, amongst other issues, for the next four years.”

He continues: “There’s increasing talk of Joe Biden securing a ‘blue wave’ Democratic sweep of the House, Senate and presidency.

“Should this happen it would likely hit risk assets, including equities.

“It also potentially could mean tax hikes for corporations and higher earners, the possible introduction of wealth tax, the break-up of Big Tech companies, environmental reforms, increasing regulation and more healthcare spending.”

He goes on to add: “Trump, the incumbent, and Biden have divergent economic policies.

“Trump’s agenda would likely include tax cuts, increasing infrastructure spending, and deregulation, which would be positive for stocks and other risk assets.

“He could also be expected to increase his ‘America First’ stance to international commerce and to double down on trade issues with China, the world’s second-largest economy.”

The deVere CEO believes it would be wise for investors to review their investment portfolios and strategies ahead of November 3 election.

“As always in a presidential election, there will be investment winners and losers. This time they could be even more pronounced due to the two candidates offering very different administrations.

“However, the priorities of whoever is in the White House can also change quickly to respond to unforeseen events – as we have all seen so dramatically this year.

“Therefore, I would suggest that investors review their portfolios to ensure that they are as ‘President-proof’ as possible so that they can take advantage of the opportunities and mitigate the risks regardless of who is the next President of the United States.

“This means proper diversification across asset classes, sectors, geography and currencies.”

Mr Green concludes: “Nothing can be taken as assumed in this critical presidential election. Investors should act now to grow and safeguard their wealth in any eventuality.”