Home » Republican win in Congress could be good for tech stocks? – Fund manager comment
Anthony Ginsberg, manager of HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) comments:
“Historically Wall Street has favoured a divided government. With a Democrat in the White House and Congress under Republican control, there is a break on either side carrying out any extensive policies, which may prove to be a source of calm for markets.
“However, we think the Republicans retaking Congress is potentially good for Tech specifically. Tech stocks this year have been hurt by high inflation expectations. Democrats are seen as the party of big government spending, so they are blamed for the high inflation rate in the US. A Republican victory in Congress, therefore, means a big curtailment on Biden’s government spending plans. This is seen as a positive by Wall Street in ultimately reducing US inflation. Lower inflation expectations are positive for growth stocks like Technology.
“At the same time, if Republicans adopt a more business-friendly approach to Tech deals, we could see a great deal of pick up in tech and healthcare deal activity”