'United we fall, divided we rise': Why tax policy is the key US election risk to stocks
Tax policy is the key risk to U.S. stock prices arising from the 2020 U.S. election, according to Goldman Sachs.
The Wall Street giant sees a durable profit cycle and continued economic expansion lifting the S&P 500 to 3,400 points by the end of 2020, but anticipates that policy uncertainty surrounding the election outcome will keep the index range-bound.
Goldman Sachs Chief U.S. Equity Strategist David Kostin told CNBC Wednesday that the best way to think about the U.S. equity market relative to the election is "united we fall, divided we rise."
Kostin hypothesized that should the Democratic Party unify control of the House, Senate and White House in November, the current corporate tax rate would likely be elevated back to levels seen prior to the Trump administration's sweeping tax ...