Less than 6,200.   This was the number in attendance for the rally in Oklahoma for President Trump last weekend as reported by the Tulsa Fire Department. Far short of the facilities capacity of 19,000 people. Oklahoma is a deep red state, a stronghold for the GOP for decades so to see such a low turnout for a sitting President should be very troubling. But as you dig deeper into the polls, you will find that support for the President is dwindling, especially in key battleground states such as Michigan and Pennsylvania. States that he had to win in 2016, and he must win in 2020 to remain in the White House. Recent reports have shown presumptive Democratic nominee Joe Biden to have as great as a double-digit lead over President Trump. The stock market is taking note and it appears that many executives are beginning to prepare for the possibility of a blue wave overtaking Washington DC. What will this mean to the average investor?

The obvious change that most experts agree would take place under a Biden Presidency would be the elimination of the Trump corporate tax cuts and income tax cuts. When President Trump took office the corporate tax rate was reduced from 35% to 21% via the Tax Cuts and Jobs Act of 2017. This Act also reduced the household income tax rate for many upper- and middle-class Americans, saving as much as $4,000 annually. Biden has also campaigned on the promise to change the way long term capital gains taxes are calculated, currently capped at 15%, by taxing these profits as ordinary income.

According to a CNBC article, as much as 50% of wall street lobbyist believe that Biden is going to beat President Trump in November. The market seems to agree as the DJIA has dropped almost 800 points since President Trump’s poor performance in Oklahoma a week ago.

While a Biden Presidency may not sound like the ideal situation to some investors, with higher taxes and more regulations than with the previous administration, having President Biden is still a much better option than the two other prominent candidates in the Democratic Party. Experts agree that had Elizabeth Warren or Bernie Sanders won the Presidency, the market would have panicked, dropping as much as 50%.

As an investor, you cannot allow outside influences that you have no control of to affect your investment goals. Keep your fundamentals the same; invest in good, solid companies, with a durable competitive advantage, a strong management team, and a healthy balance sheet. Look for buying opportunities to average down your cost if there is a dip. Do not panic sell. Invest for the long term.

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