Why a Warren presidency is worthless to the stock market
Would an Elizabeth Warren presidency pose a threat to U.S. stock markets?
Not really, says a top financial adviser.
“I don’t think it’s as big a deal as everyone is making it out to be,” Ryan Payne of Payne Capital Management told FOX Business’ Maria Bartiromo. “If you look at statistically, markets have done just as well when you’ve had a Republican in power, a Democrat in power.”
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The S&P 500 is up 36 percent since President Trump’s inauguration. While stocks jumped 52 percent under former President Barack Obama during that same period as they were recovering from a 22 percent loss under President George W. Bush, according to Dow Jones Market Data.
Meanwhile, Trump on Tuesday touted the economy during a speech at the Economic Club of New York, as advisers to the president are reportedly considering cutting middle-class taxes by as much as 15 percent.
Democrats have proposed a multitude of tax increases, including income taxes, the corporate tax rate, the capital gains tax, payroll taxes and creating a new wealth tax.
Warren, a Massachusetts senator and a top presidential contender for the Democratic Party, unveiled a wealth tax that aims to combat rising income inequality by implementing a 2 percent tax on individuals with a net worth above $50 million, and a 6 percent tax on those worth more than $1 billion.
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Warren also rolled out a Medicare-for-all plan, which would significantly alter how the U.S. pays for its health-care system. According to Warren, the $52 trillion plan could potentially be funded by billionaires. She also vowed to not raise taxes on the middle class.
Payne said to avoid the political “noise” and focus on the strong economy, which he believes can continue to strengthen as the election cycle picks up.