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CITIC Securities: 'Build Back Better' Act Bearish for US Stocks in Healthcare and New Energy Sectors
Summary: According to reports, CITIC Securities stated that Trump officially signed the 'Build Back Better' Act (OBBB), covering a wide conservative political agenda and increasing the government deficit by $3.4 trillion by 2034. In terms of the US bond market, the act further increases future debt pressure, expected to push long-term US bond rates higher. Regarding ...
According to reports, CITIC Securities stated that Trump officially signed the 'Build Back Better' Act (OBBB), covering a wide conservative political agenda and increasing the government deficit by $3.4 trillion by 2034. In terms of the US bond market, the act further increases future debt pressure, expected to push long-term US bond rates higher. Regarding the US stock market, performance expectations have stabilized since late June, with the OBBB Act bearish for US stocks in healthcare and new energy sectors. Investors should focus on the technology industry with more matching valuations and performance, manufacturing benefiting from industrialization and policy support, as well as upstream resources and nuclear power industries. For the US technology sector, the act is favorable for tech giants, AI, and semiconductor equipment. In the energy industry, the act impacts new energy but eases energy storage policies; it also promotes the revival of traditional energy, with a focus on the development of industries like nuclear power.
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Link: CITIC Securities: 'Build Back Better' Act Bearish for US Stocks in Healthcare and New Energy Sectors [Copy]
