Any meaningful impact that the incoming Biden administration can have on the private sector will likely take some time.

We expect the first 12 to 18 months of Democrat Joe Biden’s term will be largely spent undoing the Republican Trump administration’s rules—with minimal impact on company valuations.

We think the biggest effect a Democrat-controlled Congress would have on investments is a likely increase in the corporate business tax rate. We also think Democrats will work to provide more stimulus and expand healthcare coverage, primarily within the Affordable Care Act framework. The narrow Democratic majority in the US Senate will help Biden make government appointments faster. But without a larger majority in Congress, a lot of public policymaking will be left up to executive action.