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Right off the bat, well see some short-term volatility.
But heres the thing that Materazzi truly believes: Volatility creates buying opportunities.
Taxes Change
Materazzi stated that Harris wants to raise corporate taxes.
Thats going to squeeze profits, especially for the big players, he said.
But the smart investor knows strong companies can handle it.
Thetech and healthcare sectorshave robust fundamentals, and even with tighter margins, theyll continue delivering returns.
Youve just got to focus on businesses with a real edge.
Inflation Rises
Inflation is a risk with all the government spending shes proposing, according to Materazzi.
The Feds will probably respond by hiking interest rates, which tends to hurt growth stocks, said Materazzi.
But companies with pricing power (those that can pass costs on to consumers) will still perform well.
You want to stick with firms that havesolid balance sheetsand can weather the storm.
More disposable incomemeans more demand; companies in these sectors could see significant growth, Materazzi noted.
Youll see steady demand in areas likehealthcare and consumer goods, said Materazzi.
These sectors should outpace the broader market over time.
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