In a recent CNBC interview, GAMCO chairman and CEO Mario Gabelli shares insights regarding the post-election investing landscape.
Regarding his focus, Gabelli said “we look at the economic landscape with both a microscope and a telescope” to gain perspective on what’s ahead. He adds that he uses the same micro and macro view on individual companies, noting the example of how the auto industry has experienced a boost from current trends toward self-transport and away from ride-share or mass transportation services. “Those are important dynamics,” says Gabelli. He also notes that the trucking industry has seen a surge in vehicle orders and moving companies are seeing increased demand for services as people continue to clear out of cities due to the pandemic.
Regarding the post-election outlook, Gabelli says that from a macro perspective, our government has a “balanced structure that’s terrific.” He outlines a few micro issues to keep an eye on:
- Additional stimulus: Gabelli questions whether Congress will be able to push through “an extra arrow in the stimulus package.”
- Coronavirus vaccine: “I’m very optimistic,” he says, noting that our country was able to eradicate polio and smallpox and effectively treat HIV. “We’ll do it now,” he says.
- Taxes: Gabelli poses the question of how the U.S. will offset the increased spending due to the health crisis in our country and whether it will ignite inflation. A Republican Senate, he says, will resist providing stimulus to state and local governments, which may force them to raise taxes to fund shortfalls.