Stocks That Went Up The Most This Week
Investors around the world are excited. Many are searching for stocks that went up the most this week. Why? Because it appears we are headed for a political stalemate… or at least a divided government. And while this may trouble those seeking policy changes, it is exactly what the markets thrive on.
Markets Love a Divided Government
Our Senior Macroeconomic Analyst, Matt Benjamin, spoke recently about this very topic.
“The results of the election all but guarantee that we will continue to have a divided government… and gridlock. The Republicans are almost certain to retain control of the Senate, and the Democrats the House. So no matter who wins the White House, neither party will have control of the entire government. Some may consider that a bad thing, but the markets have another opinion.
They see a divided government as a check on either political party’s ability to screw things up royally.
For example, Biden’s plans include raising the top income tax rate to 39.6% (it’s now 37%) and adding a 12.4% Social Security tax on income of more than $400,000. If you add to that the average state income tax of 6%, the state and federal governments together could take up to 58% of your income under a Biden administration, as Chief Investment Expert Alexander Green recently noted.
In tax policy circles, they call that “confiscatory taxation.” Essentially, the government is confiscating a significant portion of your property without due compensation. And it has all kinds of potential unintended consequences, from disincentivizing work to sending individuals and businesses offshore to avoid such high taxes. Enforcing this plan would be difficult, though, without a Democratic majority in the Senate.
And that’s exactly why markets like divided government. [the chart above] shows how the stock market has performed under unified and divided governments from 1928 to 2018. As you can see, the best market returns over almost a century have come under a divided government, with a Democrat in the Oval Office and the Congress either Republican or split.”
Stocks That Went Up The Most This Week (5 Day Gainers)
These 4 stocks so had HUGE gains this past week and may be still climbing!
5-Day Change: +340.71%
5-Day High: 29.04
5-Day Low: 6.25
5-Day Change: +210.57%
5-Day High: 31.90
5-Day Low: 9.60
5-Day Change: +148.15%
5-Day High: 12.18
5-Day Low: 4.10
5-Day Change: +136.77%
5-Day High: 4.43
5-Day Low: 1.50
Will Stocks Keep Going Up?
It appears things have settled down a bit today, but there are still a ton of positive movements. We hope this list of stocks that went up the most this week was helpful to you. It is a powerful reminder that even in troubling times, there is a silver lining.
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