Report Detail Summary
Around the World in 90 Days : Part I
December 01, 2020
We believe that President Biden will take a dirigiste approach. He will try to regulate and provide directives to “guide” economy and thereby “improve” shareholder capitalism by persuading the corporations to adopt ESG type policies. The Biden administration will also adopt targeted benefits and taxes aimed at improving the distribution of income. All these policies will increase the regulatory burden of companies and reduce the incentives to produce and invest. And this brings us to an investment implication. Our research shows that when inflation , tax rates and regulations increase the small capitalization companies tend to outperform the large capitalization companies. Hence, we look for the smaller cap stocks to close the gap and or outperform the larger cap stocks during the Biden Administration. The one significant difference arising from the scenarios that we have discussed is the magnitude to the returns. You must have an active account to view these reports. You may register for a trial here ![]() ![]() Copyright © 2018 La Jolla Economics All Rights Reserved Legal Disclaimer - Privacy Policy - Contact Information - Login |
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