Investors had a lot to be appreciative for. The three significant indices saw incredible growth throughout the first couple of years of the Trump administration.
Legal obstacles are occurring today. We'll need to wait to see what happens there. However for now, let's presume Joe Biden takes workplace on the 20th of January. What does that mean for the high-technology sector? The message I wish to provide to readers firstly is this: No matter who is president, innovation and biotechnology are going to have an incredible year in 2021.
And I have actually never ever seen the confluence of technologies that we are witnessing right now. At the exact same time, we're just beginning to apply the most innovative computer system science and information technology to the field of biotechnology.
This is going to kick off a suite of brand-new technology applications that would have been difficult even just a few months ago. And this is all happening at the same time. [Be sure you check your inbox tomorrow afternoon. I'll be speaking with Jeff about the biggest 5G stories of 2020, and I'll ask him for his No.
Each of these technologies impacts the others. And that's what we're going to see in 2021.
Then there is a sharp "elbow," and the trend goes vertical. And the speed at which that happens is why most do not spot it up until too late. That's why my objective is to help my readers invest in the most promising tech companies right prior to that elbow.
Could that have ramifications for stocks? Investors are most likely knowledgeable about the Tax Cuts and Jobs Act. It was the most considerable tax reform law given that the 1981 Reagan tax reforms. Among the most significant things the law did was lower the corporate tax rate from 35% to 21%. That made American business taxes the lowest they have actually been given that 1938.
The other thing corporations did was benefit financiers in the form of stock buybacks. Stock buybacks are when a company acquires its own shares and lowers the number of exceptional shares, therefore increasing the worth of remaining shares. Both things were terrific for equity rates and financiers in American business.
We'll have to see if that occurs or not. That's why I'll continue to focus on the world of high technology in 2021. If a business uses an advanced item, service, or treatment, will it matter who is sitting in the Oval Workplace?
And if the marketplaces do experience a dip during the next administration, that may be a terrific purchasing opportunity for some of the interesting companies I have on my radar. I'll make sure to keep my subscribers published if there's any action we need to take. Thanks as always, Jeff.