The Biden Impact

January will be dominated by news of the incoming Biden administration. Plenty has been written about President-elect Joe Biden’s plan to raise taxes on the wealthy and its potential impact on stocks. But the market reacted favorably to Biden’s apparent victory on election night and continued to rally as the election results became clearer in the following days.

While Wall Street initially seemed to hope for a blue wave, the market’s recent performance seems to show it also likes gridlock, meaning the markets will probably react favorably regardless of the outcomes of Georgia’s run-off U.S. Senate races.