Advertisement

Tematica Research CIO on potential investor impact from Biden’s tax plans

Chris Versace, Tematica Research Chief Investment Officer, joins Yahoo Finance to discuss Biden’s remarks on tax rates and its potential impact for investors.

Video transcript

ALEXIS CHRISTOFOROUS: I'm going to bring in Chris Versace now for some quick reaction. He is chief investment officer at Tematica Research. Chris, thanks for standing by. I know you were listening to the president, as we all were. What is your take on his plan to raise taxes, and do you think it's really going to make a marked difference to investors if it does, indeed, become reality?

CHRIS VERSACE: Well, I think the real question is-- there was a lot of talk in there. I would say that was an everything-in-the-kitchen-sink type of speech. I'm not really sure what we're going to see come out of this. This has to go back to Congress, and we'll see what they haggle out. That's when I think investors are really going to start focusing on what the potential is.

As what we saw today, again, there's a lot of-- how do we say? This is what I want. This is what we need. This is what we should do. The rubber is going to hit the road coming out of Congress. And again, I think that as that crystallizes and we have these divides start to fall and one, two, three plans start to crystallize, that's when the folks on Wall Street are going to start to really roll up their sleeves, pull out their pencils, and focus on what sectors are likely to benefit, what sectors are likely to be hit, and how to position themselves for what comes next.

ALEXIS CHRISTOFOROUS: In the 30 seconds I have left, what sectors do you like given the economic backdrop right now, Chris

CHRIS VERSACE: I'll give you more specifics. I actually love Costco here. I like Target as well. Those companies are enabling what we call the "cash-strapped consumer" to extend the disposable dollars that they have. And between the two, if I had to pick one, it's Costco all day long.

ALEXIS CHRISTOFOROUS: All right. We're going to leave it there, to be continued for sure. Thanks for your patience. And we'll have you back soon to talk about some of your other stock picks. Chris Versace of Tematica Research.