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As Joe Biden has been named President-elect and the coronavirus rages on, many investors are looking at how the stock market will be impacted under the new regime. Fiduciary financial planning advisor Jordan Schwartz of Strategic Wealth Designers joined the newscast to talk about what is ahead for investors. He says there’s a potential for great growth but only after a rocky ride continues while the virus wreaks havoc on the economy.
“Right now the market is really excited about the potential for a vaccine to be ready to go sooner than later,” Schwartz says. “It’s interesting, we’ve seen the suppressed stocks – airlines, hotels, cruise lines enjoy a huge jump in price while we’ve seen massive declines in ‘stay-at-home stocks like Zoom, Netflix, Amazon or Peloton. There are certain sectors which will do well under Biden but until the virus is in the rearview mirror we are going to see continued volatility, likely into the second quarter of next year.”
Once the vaccine has been widely distributed, the economy should see a nice growth pattern coming out of the recession but it will take time. The jobs lost and small businesses shuttered will not be immediately brought back. Schwartz says he is also watching closely what will evolve around President Trump leaving office.
“We’ve never had a president not leave office if they have been defeated,” Schwartz says. “At this point in time, President Trump has stated he will not accept defeat on the grounds that the election was a fraud. It appears to be long-odds that he wins a lawsuit from that stance but it doesn’t mean that he won’t hold up a peaceful transition of power. If he were to do that, it would be historic for all the wrong reasons. Investors would likely be in for a very troublesome period were that to occur. Hopefully things do not progress to that point.”