Investment bank says fears of effects of Warren presidency might be overblown | TheHill – The Hill

Posted: October 8, 2019 at 6:49 am


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An investment bank in a report released Monday said the fears among Wall Street of the effects of a potential Warren presidency may be overblown.

RBC Capital Markets's head of U.S. equity strategy, Lori Calvasina, said in a report the negative effects of Sen. Elizabeth WarrenElizabeth Ann Warren40 state attorneys general to take part in Facebook antitrust probe: report Overnight Health Care Presented by Coalition Against Surprise Medical Billing Buttigieg unveils aggressive plan to lower drug prices | Supreme Court abortion case poses major test for Trump picks | Trump takes heat from right over vaping crackdown On The Money: Judge tosses Trump lawsuit over NY tax return subpoena | US, Japan sign trade deals | Trump faces narrowing window for trade deals | NBA sparks anger with apology to China MORE's (D-Mass.) economic policies would be "temporary," according to Bloomberg.

"Any pain from a Warren win is likely to be temporary," Bloombergsaid Calvasina wrote in the report. "Most of the sectors at high risk under a Warren presidency from a policy perspective (Financials, Energy, Health Care, Industrials) are already deeply undervalued versus the broader market.

The biotechnology, for-profit schools and health insurance sectors have developed concerns about Warren's consumer-focused advocacy, the report said, according to Bloomberg.

Calvasina said in the report Warren could back environmental, social and corporate governance investments, and small caps may outreach larger stocks because of a lower effect from Warren's policies.

Stocks would be negatively impacted by any separation of big technology companies, but retailers that couldn't outcompete Amazon could benefit from the potential technology breakups, according toBloomberg's reporting.

The stock market tends to go up over time, regardless of who occupies the White House, Calvasina wrote. Ultimately we think Corporate America and U.S. equity investors would learn to adapt to new political leadership, as they always do.

Wall Street has voiced concern over Warren's economic plans, with Democratic Wall Street donors even threatening to donate to President TrumpDonald John TrumpTrump campaign slams Minneapolis mayor, Target Center for 'attempting to extort' them with rally security fees Susan Rice calls Trump decision to pull troops from Syria 'batshit crazy' Ex-Trump officials met with Zelensky campaign aides at Trump hotel earlier this year: report MORE's reelection campaign if Warren is the nominee.

The Massachusetts senator has been soaring in the polls, competing closely with the main front-runner of the race, former Vice President Joe BidenJoe BidenA dozen House Democrats call on EU ambassador to resign amid Ukraine scandal Ex-Trump officials met with Zelensky campaign aides at Trump hotel earlier this year: report Overnight Health Care Presented by Coalition Against Surprise Medical Billing Buttigieg unveils aggressive plan to lower drug prices | Supreme Court abortion case poses major test for Trump picks | Trump takes heat from right over vaping crackdown MORE.

Warren has pushed for economic changes that work "for all of us, not just the wealthy and well-connected."

I'm fighting for an economy and a government that works for all of us, not just the wealthy and well-connected. I'm not afraid of anonymous quotes, and wealthy donors don't get to buy this process. I won't back down from fighting for the big, structural change we need. https://t.co/nx7GczQhHl

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Investment bank says fears of effects of Warren presidency might be overblown | TheHill - The Hill

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October 8th, 2019 at 6:49 am

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