What Would a Bernie Sanders Presidency Do to Stocks?

Publish date:
Video Duration:

It’s hard to say as of right now and many experts say they need more details on his policy proposals to start making assumptions, but there are a few guideposts that we can look at.

Largely, a Sanders presidency will include higher taxes, generally a negative for the market.

Sanders’ spedning ambitions include jobs guarantees for all Americans, and lower college tuition.

He wants to fund these initiatives with corporate and wealth tax increases. The higher corporate taxes would immediately be a major negative factor for stock prices, as it would be a major drag on earnings.

A wealth tax would be mostly productive in terms of redistributing income.

Any takes on th middle class would be a negative, but Sanders would like to sty away from implementing those, as his motive is to increase the purchasing power of the middle class American, which is a long-term positive for the U.S economy.

Sanders’ bid to put a ceiling on drug prices is a clear negative for drug makers and probably slightly less of a negative for pharmaceuticals like CVS and Walgreens.

Sanders’ Medicare For all plan is a clear negative for health insurers. Strategists say this could lead to volatility in the sector. Still, downside from here could be limited, as the full extent of the policy is unlikely to pass through congress and healthcare valuations are already low exactly because of this issue.

But there's more. To see more, watch the quick video above.  

Catch up on the Latest Videos on TheStreet!

Related Videos