Varney: What happens to your 401(k) if Biden wins?
Trump losing in 2020 poses 'election risk'
FOX Business' Stuart Varney on why investors should think about their money after a recent election poll reveals Biden leads Trump.
FOX Business’ Stuart Varney, in his latest “My Take,” argues that former Vice President Joe Biden leading a recent election poll is not good news for investors, as a Biden win could drastically alter the markets.
The Washington Post-ABC News poll revealed that Biden leads President Trump by 15 points, which Varney calls a “commanding lead.” He points out the lead poses an “election risk” if Trump were to lose.
“This is something that anyone with a few bucks in the market has to think about,” he said. “What happens to your 401(k) or your IRA if Joe Biden wins? I have to believe that if a Biden win looks likely, the selling will begin way before the election itself.”
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Varney said selling will accelerate since Biden’s campaign includes tax hikes for businesses and individuals which is what hurts investors.
Democratic presidential candidate former Vice President Joe Biden pauses while speaking during an event in Lancaster, Pa. June 25, 2020. (AP Photo/Matt Slocum, File)
“Raise the corporate tax rate from 21 percent to 28 percent. Raise the top tax rate from 37 percent to 39.6 percent. Raise capital gains taxes, raise estate taxes,” he said. “Bundle it all up and you've got a complete reversal of the tax-cutting policies that produced the huge 8,000-point rally for the Dow since Donald Trump became president.”
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Varney said once Biden names a vice presidential running mate, it may get worse for the markets.
“Sen. Elizabeth Warren is said to be a front runner,” he said. “She is the scourge of the banks. The scourge of Wall Street. The pundits say she would be the most influential veep in history. Would you own stock in a bank or any other financial company if she were just a heartbeat away from the oval office?”
The most important first step for the U.S., as we recover from the coronavirus pandemic, is to get the economy working again, which Varney said cannot be done by raising taxes or ending America’s “energy dominance.”
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“Ask yourself: what will you do with your money if it looks like we're heading for a Biden/Warren presidency?” he said. “It’s a dilemma. It’s called ‘election risk.’"