5 Value Stocks to Buy for a Biden Bull Market

Change is coming to Washington in less than eight weeks. On Jan. 20, Joe Biden will be sworn in as the 46th President of the United States. As outlined in recent days, Biden plans to quickly tackle the coronavirus disease 2019 (COVID-19) response, as well as roll back a number of environmental measures put in place by outgoing President Donald Trump.

But for investors, a Biden presidency likely means more of the same -- and that's a great thing for Wall Street. A potentially divided Congress makes it unlikely that corporate tax rates will increase anytime soon, which means higher earnings potential for publicly traded companies. With the Federal Reserve also continuing its dovish monetary policy, the stage is set for the young bull market to flourish under Biden's leadership.

In particular, it could be time for value stocks to thrive. A Bank of America/Merrill Lynch report from 2016 that examined the performance of growth stocks versus value stocks over a 90-year period (1926-2015) found that value stocks outperformed growth stocks on an annualized basis (17% vs. 12.6%). Value stocks also outperformed growth stocks during periods of economic expansion.

Source Fool.com