Many analysts worry a "blue wave" in the November election could wreck the stock markets. Some forecast the S&P would lose more than 10% of its value.
Michael Smith at Houston's STA Wealth Management says he won't be surprised to see the S&P tank.
"I don't know about the exact percentage but I do share the opinion that if we see democrats take the Presidency and both chambers that means a tax hike for capital gains and corporate taxes and, absolutely, that would be negative for the markets."
Smith says historically democrats like to raise taxes and there's no reason to believe they won't make good on promises to roll back the Trump tax cuts.
"The process of the democrats is to raise taxes so I do think they'll eventually they'll go after that and I think the markets will anticipate that happening, either earlier or later."
Smith says some sectors will like a Biden Presidency and some won't.
"I think there are some sectors that will favor Biden and there are definitely some sectors, and we know which sectors those are, that will probably not favor a democratic President."
A "blue wave" in November could also signal the return of burdensome regulations.