{"id":1449,"date":"2019-11-25T06:11:19","date_gmt":"2019-11-25T06:11:19","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2019\/11\/25\/a-unified-democratic-administration-could-crush-stocks-goldman-warns\/"},"modified":"2019-11-25T06:11:19","modified_gmt":"2019-11-25T06:11:19","slug":"a-unified-democratic-administration-could-crush-stocks-goldman-warns","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2019\/11\/25\/a-unified-democratic-administration-could-crush-stocks-goldman-warns\/","title":{"rendered":"A \u2018unified Democratic administration\u2019 could crush stocks, Goldman warns"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div id=\"article-body\" itemprop=\"articleBody\">\n<blockquote class=\"shareable\" data-share-hover=\"true\" data-share-modprefix=\"mw_pullquote_\" data-share-text=\"A \u2018unified Democratic administration\u2019 could crush stocks, Goldman warns\"><p>&#13;<br \/>\n                  \u2018If there\u2019s a probability or possibility that there could be a unified Democratic administration&#8230; then it\u2019s highly likely that the tax cut of 2017 would be rolled back. Then you\u2019re looking at&#8230; possibly even up to a 20% correction on the S&amp;P.\u2019&#13;<\/p>\n<footer>&#13;<br \/>\n                      &#13;<br \/>\n                  <\/footer>\n<p>&#13;\n              <\/p><\/blockquote>\n<p>That\u2019s Tim Moe, Goldman Sachs chief Asia-Pacific equity strategist, <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2019-11-25\/trade-u-s-elections-are-top-market-risks-says-goldman-sachs-s-moe-video\" target=\"_new\" class=\"icon \" rel=\"noopener noreferrer\">talking on Bloomberg <\/a>about what could happen to the stock market is Democrats end up controlling both the Executive and Legislative branches of government in 2020.<\/p>\n<p>The S&amp;P 500&#13;<br \/>\n&#13;<br \/>\n                            &#13;<br \/>\n                            &#13;<br \/>\n                                  &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n                                  &#13;<br \/>\n                                    <span class=\"quote up bgQuote\" data-channel=\"\/zigman2\/quotes\/210599714\/realtime\" data-bgformat=\"\"><a class=\"qt-chip trackable\" data-fancyid=\"SPUSIndexSPX\" href=\"http:\/\/www.marketwatch.com\/investing\/index\/spx\" data-track-mod=\"MW_story_quote\" target=\"_blank\" rel=\"noopener\">SPX, <span class=\"bgPercentChange\">+0.22%<\/span><\/a><\/span>&#13;<br \/>\n&#13;<br \/>\n                            &#13;<br \/>\n                                  &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n                                        currently sits at 3,110 after another positive close on Friday. A 20% haircut from here would bring the broad-market gauge all the way down below 2,500, a level not seen in almost a year. <\/p>\n<p>And the election is just one of two major risks investors may have to grapple with in the coming year, according to Moe. <\/p>\n<p>The other one, of course, is trade with China.<\/p>\n<p>\u201cThe key point would be that the market&#8230; has rallied quite significantly on expectations of hope for a trade deal being done,\u201d Moe explained. \u201cOur sense is that the risk reward here is probably negatively skewed. In other words, if a trade deal is done, markets are probably flat to up modestly. But if something doesn\u2019t happen, then I think there\u2019s a bit of price appreciation to give back.\u201d<\/p>\n<p>Watch the full interview:<\/p>\n<p>U.S. stocks are poised for a positive open Monday on hopes that a deal is getting closer, following Chinese President Xi Jinping\u2019s claim that Beijing is <a href=\"http:\/\/www.marketwatch.com\/story\/asian-markets-gain-amid-fresh-hopes-for-us-china-trade-deal-2019-11-24\" class=\"icon none\" target=\"_blank\" rel=\"noopener\">working to \u201ctry not to have a trade war.<\/a>\u201d Futures on the Dow&#13;<br \/>\n&#13;<br \/>\n                            &#13;<br \/>\n                            &#13;<br \/>\n                                  &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n                                  &#13;<br \/>\n                                    <span class=\"quote up bgQuote\" data-channel=\"\/zigman2\/quotes\/210598065\/realtime\" data-bgformat=\"\"><a class=\"qt-chip trackable\" data-fancyid=\"DowJonesGlobalIndexDJIA\" href=\"http:\/\/www.marketwatch.com\/investing\/index\/djia\" data-track-mod=\"MW_story_quote\" target=\"_blank\" rel=\"noopener\">DJIA, <span class=\"bgPercentChange\">+0.39%<\/span><\/a><\/span>&#13;<br \/>\n&#13;<br \/>\n                            &#13;<br \/>\n                                  &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n                                        \u00a0, S&amp;P and Nasdaq&#13;<br \/>\n&#13;<br \/>\n                            &#13;<br \/>\n                            &#13;<br \/>\n                                  &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n                                  &#13;<br \/>\n                                    <span class=\"quote up bgQuote\" data-channel=\"\/zigman2\/quotes\/210598365\/realtime\" data-bgformat=\"\"><a class=\"qt-chip trackable\" data-fancyid=\"XNASIndexCOMP\" href=\"http:\/\/www.marketwatch.com\/investing\/index\/comp\" data-track-mod=\"MW_story_quote\" target=\"_blank\" rel=\"noopener\">COMP, <span class=\"bgPercentChange\">+0.16%<\/span><\/a><\/span>&#13;<br \/>\n&#13;<br \/>\n                            &#13;<br \/>\n                                  &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n      &#13;<br \/>\n                                        were all higher at last check. <\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] &#13; \u2018If there\u2019s a probability or possibility that there could be a unified Democratic administration&#8230; then it\u2019s highly likely that the tax cut of 2017 would be rolled back. Then you\u2019re looking at&#8230; possibly even up to a 20% correction on the S&amp;P.\u2019&#13; &#13; &#13; &#13; That\u2019s Tim Moe, Goldman Sachs chief Asia-Pacific equity [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":1450,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1449","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=1449"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/1449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/1450"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=1449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=1449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=1449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}