According to Goldman Sachs, a blue wave in which Democrats gain unified control of Wahington is becoming more likely.
“That would prompt us to upgrade out equity forecasts,” Goldman Sachs chief economist Jan Hatzius wrote in a Monday report, as noted by CNN Business.
Indeed, Democrat presidential candidate Joe Biden could raise corporate taxes after coming to power. However, he is also expected to boost government spending.
A blue wave would sharply raise the probability of a fiscal stimulus package of at least $2 trillion shortly following the Jan. 20 inauguration, Goldman Sachs said on Tuesday.
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