(TheLastPatriotNews.com) – Raising the alarm over the disastrous economic consequences, CEO and financial expert from Infrastructure Capital Management Jay Hatfield disclosed that a Democrat takeover of both the White House and Congress this fall would cause the markets to take a massive hit.
Watch the video below this post.
Appearing on “Making Money with Charles Payne, the expert showcased a chart during the interview that indicated that Hatfield projects an “S&P 500 target” of 4,800 if Democrats take control, while a “Republican sweep” would push the target to 6,500.
“That’s going to drive the market way lower, it’s going to spook people. And so it’s not like this big call like, ‘Oh, the Democrats are terrible and the Republicans are great.’ Tax policy matters to stocks, it matters to valuation,” he added.
“You can’t ignore it, I don’t care what political stripe you are. It’s going to hurt the market if there’s a Democratic sweep,” the expert pointed out.
If elected president, Kamala Harris plans to raise the corporate tax rate to 28%, up from the 21% rate established under GOP presidential nominee Donald Trump’s 2017 Tax Cuts and Jobs Act.
Hatfield warned that such a tax hike would hit corporate earnings and growth, dragging down the market.
Hatfield said, “This isn’t really a political point, just the math. So if you raise corporate taxes 28%, earnings go down ten and the growth rate goes down, which would imply about another 10% reduction in the market multiple.”
“And the [4,800] seems a little too conservative, but if there is a Democratic sweep, people aren’t stupid. They know the cutoff date’s going to be at the end of this year. There’s going to be a ton of people taking profits in primarily tech,” he continued.
Back in August, economist and TrendMacro Chief Investment Officer Don Luskin warned on Fox Business’ “The Evening Edit” that Harris’ tax plan could slash Americans’ 401(k)s by 13%.
“Corporate taxes are just an expense for companies, they’re a huge expense. Raising the corporate tax from 21% where it is today to 28%, where Kamala Harris wants to put it, is a 33% expense increase,” Luskin said.
He added, “Expenses will go up 33%. That will take 13% off of S&P 500 earnings, that will take 13% off the S&P 500, that will take 13% off your 401(k).”
Investment Adviser CEO Explains How 'Democratic Sweep' In 2024 Election Would 'Hurt The Market' pic.twitter.com/cDzda8E9cr
— Daily Caller (@DailyCaller) September 3, 2024
Copyright 2024, TheLastPatriotNews.com
