JPMorgan Says U.S. Capital Gains Tax Hike May Briefly Hit Stocks
- Tax policies get fresh focus on chances of Democratic sweep
- Strategists see potential strong stock gains once hike is done
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If Democrats do “sweep” the November elections and increase capital gains taxes, it would be unlikely to cause more than a temporary slide in the U.S. stock market, according to JPMorgan Chase & Co.
Strategists and prediction markets are increasingly pricing in a “Blue Wave” where Democrat Joe Biden wins the presidency and his party takes control of the Senate, adding to their hold on the House. That might allow for an increase in some tax rates -- including capital gains.