×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: blackrock | growth | stocks | divided | government

BlackRock Likes Growth Stocks on Divided US Government

BlackRock Likes Growth Stocks on Divided US Government
(Miles Nelson/Dreamstime)

Sunday, 08 November 2020 04:14 PM EST

If the U.S. ends up with a divided government it could mean limited fiscal stimulus, capped increases in bond yields and dampened inflation expectations, while risk assets get a boost, according to BlackRock Investment Institute.

Some fiscal relief “looks possible” in the near term, but the size and scope will be more modest than it would have been with a united Democratic Party government, the BlackRock team wrote in a note published Nov. 7.

Democrat Joe Biden won the presidency and his party retained control of the House, but appears unlikely to take control of the Senate. The prospect of divided government has driven down yields and the environment bodes well for credit and growth companies, according to the note.

Developments point to a return to a near-term market environment dominated by “low rates, a hunt for yield and growth stocks,” it said.

The global financial market had a volatile week as investors awaited the outcome of U.S. elections. Tech and health-care stocks helped the S&P 500 Index gain 7.3% last week, while 10-year U.S. Treasury yields retreated by about five basis points. The greenback weakened.

BlackRock Investment Institute expects tech and health-care companies, as well as quality and large-cap stocks, to perform well under a Biden presidency with a divided government. Assets in emerging markets may benefit from improved trade sentiment, especially in Asia outside of Japan, it said.

© Copyright 2024 Bloomberg News. All rights reserved.


StreetTalk
If the U.S. ends up with a divided government it could mean limited fiscal stimulus, capped increases in bond yields and dampened inflation expectations, while risk assets get a boost, according to BlackRock Investment Institute.
blackrock, growth, stocks, divided, government
230
2020-14-08
Sunday, 08 November 2020 04:14 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved