Investors were positive about Joe Biden leading up to his inauguration, and the markets have remained strong since he was sworn in on Wednesday. Investors should follow his policies closely rather than simply rely on the sentiments and promises from the campaign trail.
Here are the executive orders he signed this week that investors should know about.
Ending the Withdrawal from the World Health Organization
Joe Biden signed an executive order to end the process of withdrawal from the World Health Organization. This will give the United States more access to WHO collaboration and could potentially give it more oversight over how the Coronavirus Pandemic is addressed internationally.
While membership is costly, it is generally considered to be a net positive as collaboration can help to fight deadly epidemics and pandemics more effectively.
Rejoining the Paris Climate Agreement
Former President Donald Trump’s decision to leave the Paris Climate Agreement has been reversed by the Biden Administration. The United States will now become a signatory to this multinational framework intended to reduce pollutants and slow climate change.
It could mean additional costs for some pollutive industries, but it is likely to create value in alternative energy investments as more businesses and federal agencies move to clean energy to meet global standards.
Extending Eviction and Foreclosure Moratoriums
An executive order has been signed to explore the possibility of extending eviction and foreclosure moratoriums. The order relies on individual departments creating rules to prevent people from losing their homes during the pandemic.
This is a two-sided issue. For landlords and lenders, an extended moratorium could be costly. However, the gains of protecting renters and mortgage borrowers during a time of economic uncertainty are arguably more valuable to the wider economy.
Require Masks and Social Distancing on Federal Properties
Anyone on federal property will now be required to wear a mask or face covering to prevent the transmission of the Coronavirus. This executive order is enforceable and could play some part in reducing the damage that the pandemic is already causing. It could also have an upside of setting an example for private businesses.
Ultimately, any move to limit the transmission of the virus is positive for the economy and investors. The faster the pandemic is brought under control, the better the economy will perform. Historically, a strong economy leads to strong performance in the stock market.
Still Much to See with the New Administration
There’s a long way to go before Biden’s impact on the stock market can be quantified. But, at least for the moment, he is making decisions that will benefit investors, the economy, and the American public. Stock market indexes are up in the week so far, suggesting that there’s plenty of life left in the rally still.
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