alt
Welcome
  • Funds

    Products

    • Mutual Funds
    • ETFs
    • SmartRetirement Funds
    • 529 Portfolios
    • Money Market Funds
    • Commingled Funds
    • Featured Funds

    Asset Class Capabilities

    • Fixed Income
    • Equity
    • Multi-Asset Solutions
    • Alternatives
    • Global Liquidity
  • Investment Strategies

    Investment Approach

    • ETF Investing
    • Separately Managed Accounts
    • Sustainable Investing
    • Variable Insurance Portfolios
    • Commingled Pension Trust Funds

    College Planning

    • 529 College Savings Plan
    • College Planning Essentials

    Defined Contribution

    • Retirement Solutions
    • Target Date Strategies
    • Full-service 401(k) Solution
    • Retirement Income
  • Insights

    Market Insights

    • Market Insights Overview
    • Guide to the Markets
    • Quarterly Economic & Market Update
    • Guide to Alternatives
    • Market Updates
    • On the Minds of Investors
    • Principles for Successful Long-Term Investing
    • Weekly Market Recap

    Portfolio Insights

    • Portfolio Insights Overview
    • Asset Class Views
    • Equity
    • Fixed Income
    • Long-Term Capital Market Assumptions
    • Monthly Strategy Report
    • Sustainable Investing

    Retirement Insights

    • Retirement Insights Overview
    • Guide to Retirement
    • Principles for a Successful Retirement
    • Defined Contribution Insights
  • Tools

    Portfolio Construction

    • Portfolio Construction Tools Overview
    • Portfolio Analysis
    • Investment Comparison
    • Bond Ladder Illustrator

    Defined Contribution

    • Retirement Plan Tools & Resources Overview
    • Target Date Compass®
    • Core Menu Evaluator℠
    • Price Smart℠
  • Resources
    • Account Service Forms
    • Tax Planning
    • News & Fund Announcements
    • Insights App
    • Events
    • Library
  • About Us
  • Contact Us
Skip to main content
  • Account Login
    • Login
    • Register
  • Welcome
    • My Collections
    • Logout
  • Role
  • Country
  • Shareholder Login
Search
Menu
CLOSE
Search
You are about to leave the site Close
J.P. Morgan Asset Management’s website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. J.P. Morgan Asset Management isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the J.P. Morgan Asset Management name.
CONTINUE Go Back
  1. Home
  2. Insights
  3. Market Insights
  4. Market Updates
  5. On the Minds of Investors
  6. What can we expect in Biden’s first 100 days?

  • Share
  • LinkedIn Twitter Facebook
  • Email
  • Print
  • Actions
  • LinkedIn Twitter Facebook
    Email Print

What can we expect in Biden’s first 100 days?

01/20/2021

Meera Pandit

During the first 100 days, we anticipate another fiscal package, a pivot on foreign policy, trade and regulation, and a preview of future recovery spending.

Meera Pandit

Meera Pandit

Global Market Strategist

Listen to On the Minds of Investors

01/20/2021

Inauguration day starts the clock on the first 100 days of a new administration, a symbolic benchmark period to measure early success. During the first 100 days, we anticipate another fiscal package, a pivot on foreign policy, trade and regulation, and a preview of future recovery spending.

Immediately, a flurry of executive orders will promote Biden’s domestic and economic priorities, such as rejoining the Paris climate accord and extending moratoriums on evictions and student loan payments. A sweeping proposal on immigration reform will also signal a commitment to addressing those complexities, although this could be difficult for Congress to agree upon. While these items will build policy momentum, few will have as direct and swift an economic impact as his proposed 1.9 trillion USD fiscal package.

Biden’s wish list for the fiscal stimulus package includes aid for state and local governments, larger and extended unemployment benefits, further household stimulus checks, and funding for the vaccine rollout and testing. Although the eventual package will likely carry a smaller price tag, more fiscal stimulus should lead to a faster and stronger recovery in both growth and earnings. That should benefit cyclical stocks, like financials, industrials and materials, plus small caps. However, improving growth and employment could push the Fed to taper asset purchases sooner, resulting in further yield curve steepening. While this should also benefit cyclical sectors in equities, it would hurt long-duration fixed income.

Beyond this, Biden will also set the tone for foreign policy, trade and regulation. The administration will likely have a tough, but more predictable approach to China, and cooperate with foreign allies. This could lead to further dollar weakening, which should benefit international equities. From a regulatory standpoint, antitrust legislation on technology is a bipartisan issue, but probably a slow-moving one, representing a long-term headwind for technology stocks. Still, growth stocks will be important to portfolios once lower trend-like growth resumes post-pandemic. However, within energy, re-regulation could be swifter. Although this is a headwind for energy returns, structural challenges of excessive oil supply and lower oil prices are already a constraint.

After the first 100 days, the administration is likely to propose a recovery package geared towards infrastructure spending and clean energy, perhaps with modest tax reform included. However, a slim Democratic majority, a large share of moderate Democrats, and political polarization, highlighted in the chart below, may limit the scope of change. With the politics of 2020 behind us, policy will come to the fore in 2021, charting the course for the economic recovery and future growth. 

Liberal-conservative partisan polarization by chamber

Distance between party means


Lewis, Jeffrey B., Keith Poole, Howard Rosenthal, Adam Boche, Aaron Rudkin, and Luke Sonnet (2021).
Voteview: Congressional Roll-Call Votes Database. https://voteview.com/

0903c02a82ae59cd

Explore more

Stress test portfolios

The best portfolios stand strong when the markets don’t

Stress test portfolios now
purple bubbles

Aiming to be well positioned for future growth?

View solutions for growth
On the Minds of Investors podcast

On the minds of investors

View all
Global economy US economy
J.P. Morgan Asset Management

  • Capital Gains Distributions
  • eDelivery
  • Fund Documents
  • Glossary
  • Help
  • How to invest
  • Important Links
  • Mutual Fund Fee Calculator
  • Accessibility
  • Investment stewardship
  • Privacy
  • Proxy Information
  • Senior Officer Fee Summary
  • SIMPLE IRAs
  • Site disclaimer
  • Terms of use
J.P. Morgan

  • J.P. Morgan
  • JPMorgan Chase
  • Chase
Opens LinkedIn site in new window Opens Youtube site in new window Opens Twitter site in new window

This website is a general communication being provided for informational purposes only. It is educational in nature and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purposes. By receiving this communication you agree with the intended purpose described above. Any examples used in this material are generic, hypothetical and for illustration purposes only. None of J.P. Morgan Asset Management, its affiliates or representatives is suggesting that the recipient or any other person take a specific course of action or any action at all. Communications such as this are not impartial and are provided in connection with the advertising and marketing of products and services. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professionals that take into account all of the particular facts and circumstances of an investor's own situation.

 

Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors.

 

INFORMATION REGARDING MUTUAL FUNDS/ETF:

 

Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing. The summary and full prospectuses contain this and other information about the mutual fund or ETF and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 or download it from this site. Exchange Traded Funds: Call 1-844-4JPM-ETF or download it from this site.

 

J.P. Morgan Funds and J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. JPMorgan Distribution Services, Inc. is a member of FINRA  FINRA's BrokerCheck

 

INFORMATION REGARDING COMMINGLED FUNDS:

 

For additional information regarding the Commingled Pension Trust Funds of JPMorgan Chase Bank, N.A., please contact your J.P. Morgan Asset Management representative.

 

The Commingled Pension Trust Funds of JPMorgan Chase Bank N.A. are collective trust funds established and maintained by JPMorgan Chase Bank, N.A. under a declaration of trust. The funds are not required to file a prospectus or registration statement with the SEC, and accordingly, neither is available. The funds are available only to certain qualified retirement plans and governmental plans and is not offered to the general public. Units of the funds are not bank deposits and are not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges, and expenses of the fund before investing.

 

INFORMATION FOR ALL SITE USERS:

 

J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.

 

NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

 

Telephone calls and electronic communications may be monitored and/or recorded.
Personal data will be collected, stored and processed by J.P. Morgan Asset Management in accordance with our privacy policies at https://www.jpmorgan.com/privacy.

 

If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance. 

 

Copyright © 2021 JPMorgan Chase & Co., All rights reserved