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What Election Results Mean For Your Money


Gridlock.  Not so fun at Malfunction Junction, the intersection of I-4 and I-275, when you’re trying to get through downtown Tampa.  Gridlock in government doesn’t seem like a good thing either.  Nothing much gets down.  Yet Wall Street and financial markets seem to revel in it.


Mainstream Media and the pollsters Big Blue Wave never really forming. Republicans likely maintaining control of the Senate, it would be a divided congress.  Wall St and the market generally respond well to gridlock. 


The market showing its affection for gridlock, with stocks rallying the last two sessions, the best two days ever post election.  And the best four-day start to November ever, the S&P 500 up 7.4% through Thursday.

 

Still no election results as I prepare this video.  And it could drag out for days or even weeks with legal challenges.   


Should Biden prevail, Republicans holding a Senate majority puts a lid on Biden’s basement-laid plans.  No massive stimulus.  No tax hikes on corporate America and the wealthy.  No increase in capital gains.  No packing the court.  The Green New Deal fades to black.  Puerto Rico and DC will have to wait for statehood.  No defunding the police.  


Historically, the market has done well under both a Democrat and Republican in the White House.  Investment accounts should do fine over the long-term.  There’ll alway be a Crisis du Jour and yet the great companies of America adapt and prosper.  And so do you as owners of these great companies inside your mutual funds.


By the way, does it feel like the virus is taking election week off.  Kind of like it did during last Riot Season.  Makes me feel like Covid Theater is a result of a politically motivated Crisis of Awareness rather than a lockdown-worthy threat to existence.


But hey, that’s just me.  What do you think?