Stocks fall the hardest since October — Here’s how investors can position their portfolio

Investors were reminded of a shocking fact: stocks do not only go up as growth stocks — tech in particular — saw their biggest daily drop since October.

Over the past year, historically low interest rates have pushed investors looking for higher returns into the stock market — sending stock prices to record highs.

Where in the US Does it Make Sense to Start a Business?

Counterintuitive as it may seem, many have predicted a boom in U.S. startups in 2021 and beyond. When economic catastrophe hits, as it did in 2020, a lot of people wind up facing financial difficulty. At the same time though, some of those same people have new incentives to thrust themselves into fresh pursuits or careers. Whether out of need or simply a desire to escape a tricky employment situation, a lot of people move out of recessions and into startups.

Stocks move big on Georgia Senate election results — sector recap

No one man should have all that power… Except Biden — who’s just been given even more power over federal laws and legislations.

The Georgia Senate election on Jan. 5 gave Biden control of both the House and Senate — making it easier to implement major policies. Most notably…

• New economic stimulus could benefit the overall economy by putting more money into the hands of consumers and small businesses.
• Increase corporate tax from 21% to 28% which will lower corporate profits and negatively impact stocks.

Biden’s impact on the stock market — increased taxes and more economic stimulus

The fate of the stock markets rests on one last election outcome — a vote on Jan. 5 for Perdue’s Senate seat in Georgia, which decides the party that controls the upper chamber.

Biden’s impact on the technology sector – rising taxes and increased regulation

What does Biden mean for all those tech stocks investors love hoarding? Bad news first…

• Increase taxes on tech companies, who already pay fewer taxes on their income generated outside the US. Biden’s plans are to double the tax rate on the income these companies make internationally to 21%.
• Changes to Section 230, a law that protects platforms like Facebook from being sued for user-posted content. Biden had previously called for the law to be revoked or removed — bad news for social media companies.

Biden’s impact on the oil & gas and renewables sector

In July, Biden proposed a massive $2t budget to be spent over 4 years on clean energy sources. This will include:

• Achieving net-zero emissions by 2050 and transforming the US transportation sector towards electricity use.
• Installing a network of electric car charging infrastructure and battery storages across the US.

A Republican Senate, which is in favor of fossil fuels, will look to prevent much of this from seeing the light of day.