An investment bank in a report released Monday said the fears among Wall Street of the effects of a potential Warren presidency may be overblown.
RBC Capital Markets’s head of U.S. equity strategy, Lori Calvasina, said in a report the negative effects of Sen. Elizabeth Warren’s (D-Mass.) economic policies would be “temporary,” according to Bloomberg.
{mosads}”Any pain from a Warren win is likely to be temporary,” Bloomberg said Calvasina wrote in the report. “Most of the sectors at high risk under a Warren presidency from a policy perspective (Financials, Energy, Health Care, Industrials) are already deeply undervalued versus the broader market.”
The biotechnology, for-profit schools and health insurance sectors have developed concerns about Warren’s consumer-focused advocacy, the report said, according to Bloomberg.
Calvasina said in the report Warren could back environmental, social and corporate governance investments, and small caps may outreach larger stocks because of a lower effect from Warren’s policies.
Stocks would be negatively impacted by any separation of big technology companies, but retailers that couldn’t outcompete Amazon could benefit from the potential technology breakups, according to Bloomberg’s reporting.
“The stock market tends to go up over time, regardless of who occupies the White House,” Calvasina wrote. “Ultimately we think Corporate America and U.S. equity investors would learn to adapt to new political leadership, as they always do.”
Wall Street has voiced concern over Warren’s economic plans, with Democratic Wall Street donors even threatening to donate to President Trump’s reelection campaign if Warren is the nominee.
The Massachusetts senator has been soaring in the polls, competing closely with the main front-runner of the race, former Vice President Joe Biden.
Warren has pushed for economic changes that work “for all of us, not just the wealthy and well-connected.”