Biden's plans on climate and foreign policy can be positive for stocks, says Blackstone's Byron Wien

Published Fri, Oct 23 202012:41 PM EDTUpdated Fri, Oct 23 20201:24 PM EDT

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

(This story is for CNBC Pro subscribers only.) Blackstone's Byron Wien told CNBC on Friday he believes Democratic nominee Joe Biden 's foreign policy outlook and plans for combating climate change could be beneficial for the stock market. While many people suggest a second term for President Donald Trump would be better for businesses than a Biden administration, Wien said on "Squawk on the Street" that it "may not turn out that way." "I think the top two priorities for Biden are going to be getting the [coronavirus] under control and creating jobs," said Wien, a Wall Street veteran who now serves as vice chairman of Blackstone's Private Wealth Solutions Group. "I think raising taxes and other things that might be less favorable for the market are probably going to be secondary to those two objectives. So if we get those two objectives first, that could be good for the market." Wien said he expects Biden to defeat Trump in the Nov. 3 election and predicted that markets will probably rally once the outcome is determined as the cloud of uncertainty dissipates. Longer term under a Biden presidency, Wien said there could be helpful developments for stocks. "I think that Biden has a better chance of bringing the country together. I think Biden will reestablish more constructive relationships with our foreign allies," said Wien, whose annual "Ten Surprises" list has been widely followed by investors since its inception the mid-1980s. At the time, he was Morgan Stanley 's chief investment strategist. "I think Biden will deal more effectively with inequality, with climate change, and I think those are positives for the market," he continued. More generally, Wien said he has been encouraged by the pace of the U.S. economic recovery from its coronavirus pandemic-induced recession. However, he cautioned that after the initial period of swift gains, the recovery is likely to slow and take on the shape of a square root symbol. "We're not going back into a bear market. We're not going back into a recession. I think growth is going to be gradual and I think equity returns are going to be modest, and I don't think inflation and interest rates are going to rise much," he said. "And at these interest rates, the market can withstand a pretty high multiple, and so I think the outlook is favorable but expectations should be modest."

Byron Wien

Chris Goodney | Bloomberg | Getty Images

(This story is for CNBC Pro subscribers only.)

Blackstone's Byron Wien told CNBC on Friday he believes Democratic nominee Joe Biden's foreign policy outlook and plans for combating climate change could be beneficial for the stock market.

While many people suggest a second term for President Donald Trump would be better for businesses than a Biden administration, Wien said on "Squawk on the Street" that it "may not turn out that way."

"I think the top two priorities for Biden are going to be getting the [coronavirus] under control and creating jobs," said Wien, a Wall Street veteran who now serves as vice chairman of Blackstone's Private Wealth Solutions Group. "I think raising taxes and other things that might be less favorable for the market are probably going to be secondary to those two objectives. So if we get those two objectives first, that could be good for the market."