Joe Biden is sworn in today. Lets go over some changes we can expect to see immediately and in the future.
First, do you remember all of the executive orders President Trump signed? Well, they’ll probably all get rolled back. I always thought executive orders are a bad way to govern. We have a two party system that does best when they work together to get laws passed.
Second, we can expect to see a weaker dollar because more stimulus is coming. Former Chair of the Fed, Janet Yellen, said last week to expect a bigger stimulus package being that the democrats control both houses of Congress and the White House. The dollar has depreciated 10% versus a basket of currencies and, in my opinion, you can expect more of the same.
Third, we can expect a focus on clean and renewable energy. It’s my theory that Coronavirus has hastened the move to electric vehicles world wide. President Biden and this government are pro renewable and clean energy so we should see more incentives to move to those types of energy.
Lastly, in general, we can expect more regulation. This typically costs business money to comply with, so you can expect to see adjustments to earnings in some industries.