Overall, equity investors don’t seem to be worried about Joe Biden’s chances of winning the White House in November. Although Biden continues to lead trump in the polls, the stock market has continued to rise in recent months. However, as the general election approaches, investors may need to seriously consider the consequences of one party dominance, as well as a more in-depth study of Biden’s proposed tax agenda and its possible impact on various industries. < / P > < p > it is generally believed that the president is not very business friendly and therefore unfavourable to stock prices. But in fact, various studies have found that the stock market usually performs a little better under leadership than Republicans, depending on how many elections you analyze. In his historical research, Julian Timmer, head of Fidelity’s global asset allocation division, found that stocks outperformed the government in the early days of the Republican presidency. But during his four-year tenure, Timo wrote in his report, the result was essentially a draw. Perhaps the bigger question is what will happen to Congress. For now, it seems likely to continue to control the house of Representatives this fall, while the Senate is up for grabs. < / P > < p > “the stock market tends to perform best when the country is divided.” “Markets tend to like checks and balances to make sure that one side doesn’t have too much influence,” wrote Ryan Detrick, senior market strategist at LPL financial According to data from LPL financial, the annual return on the S & P 500 index has been 17.2% since 1950, during the period of the split of Congress. By contrast, when Republicans controlled the house and Senate, the average was 13.4% and 10.7% respectively. By the way, the stock market tends to perform worse in the year or two after the election than in the two years before it. Various research results agree with this. According to Timo, the return on large cap stocks was about 7.9% in the first year after the election, rising to an average of 9.1% in the fourth year. Jack Ablin, chief investment officer at cresset asset management, wrote in a commentary that, for example, Biden’s victory is not good for pharmaceutical companies, but good for alternative energy companies. < / P > < p > If Biden strengthens the Affordable Care Act and gives the federal government more power to negotiate lower prices for prescription drugs, pharmaceutical manufacturers may be hurt. “Bargaining is likely to reduce healthcare sector profits because under the current system, most of the cost increases are borne by patients and their employers,” Ablin said < / P > < p > many healthcare stocks have been struggling in recent months as Biden is increasingly likely to win. “Since May, big pharmaceutical companies have lagged behind the market, when Biden gained a statistical advantage in the polls,” abulin wrote. Biden also supports new financial risk fees for large banks, according to the Committee for a responsible federal budget. This, together with the possibility of Senator Elizabeth Warren being appointed Treasury Secretary in the Biden administration, may explain the recent lag in bank stocks. More loan problems caused by coronaviruses could be another drag on them. On the positive side, companies engaged in providing alternative energy may benefit if the “Green New Deal” becomes a policy. Biden supports electric cars, expanded charging stations and zero emission public transport, abulin wrote. < / P > < p > he wrote that stocks of electric car maker Tesla, Vestas wind systems and first solar Tempe, an Arizona based solar panel maker, have outperformed the market recently. < / P > < p > traditional oil and gas companies, which have been suffering from reduced travel and air travel as a result of the epidemic, may face further adverse factors from the hostile Biden administration. < / P > < p > “the presidential candidates will seek to tax carbon emissions, terminate new oil and gas leases on federal land, and terminate offshore drilling,” abulin wrote. “Of all industries, Biden’s election seems to be the worst for domestic and foreign fossil fuel companies.” Biden’s victory may also change the income tax system in the United States, especially if one retains control of the house and seizes control of the Senate, Biden is more likely to push his agenda through Congress. According to a report by the US due diligence federal budget committee, Biden proposed to increase the personal maximum tax rate from the current 37% to 39.6%, which is the level before the tax reform. He also advocated that long-term capital gains of high-income people should be taxed as ordinary income. According to the committee’s report, Biden plans to raise taxes by 13% to 18% for the top 1% of Americans and 2% to 6% for the top fifth of American households, with little impact on most other people. Biden’s plan will raise corporate tax rates from the current 21% to 28% and impose minimum tax rates on domestic and foreign income, according to the US due diligence federal budget committee. Although the 28% tax rate is still lower than the 35% corporate income tax implemented before the 2017 reform act, a higher corporate tax may reduce some profits. An interesting footnote to the committee is that higher corporate tax rates do not always hurt stock prices. In fact, the federal government has raised corporate income tax rates five times since World War II, but the S & P 500 has risen by an average of 12.9% after 12 months, according to Phoenix’s surest wealth management.