The One Election Scenario That Would Be A “Disaster” For The Financial Markets
On Tuesday night all of the speculation about the midterm elections will mercifully be over, and there is one potential outcome that is being called a “disaster” for the financial markets. Over the past couple of years, stock prices have soared to unprecedented levels, and Wall Street has seemed to greatly appreciate the pro-business environment that President Trump has attempted to cultivate. Regulations have been rolled back, corporate taxes have been reduced significantly, and many corporate executives no longer fear that the federal government is out to get them. But after Tuesday, everything could be different.
The most likely outcome appears to be that the Democrats will take control of the House of Representatives and the Republicans will remain in control of the Senate. For what it is worth, Nate Silver is currently projecting that the Democrats have an 88 percent chance of winning the House and only a 19 percent chance of winning the Senate.
But of course he was also projecting a huge landslide victory for Hillary Clinton in 2016.
In any event, a divided Congress would create gridlock in Washington, and according to Wedbush Securities managing director Steve Massocca that would produce “some negative fallout” for the financial markets…
But in the end, such a scenario is not likely to move stock prices too substantially.
However, if the Democrats are able to take control of both houses of Congress on Tuesday, Massocca believes that would truly be a “disaster” for stock prices…
Normally by now we would have a really good idea of what is going to happen tomorrow, but at this point the polls are all over the place.
For example, the last generic poll conducted by CNN has Democrats up by 13 points, but the last generic poll conducted by Rasmussen has Republicans in the lead…
For the record, Rasmussen was more accurate back in 2016, and in only about 24 hours we will find out who was more accurate this time around.
There are some that are entirely convinced that Republicans will be able to maintain control of both houses of Congress, and needless to say that would almost certainly cause a huge surge on Wall Street. In fact, one Nevada lawyer is so sure that Republicans will maintain control of the House of Representatives that he just flew to London and bet $130,000 of his own money on that outcome…
$130,000 is an enormous amount of money, and so I hope that he knows what he is doing.
On the other side, Nancy Pelosi is so confident about the outcome that she has already declared victory on national television.
But of course many other leading Democrats are extremely nervous right now. They remember the election night debacle of 2016, and they are concerned that something like that might happen again.
Democratic pollster John Anzalone is describing what they are going through as “the bed-wetting phase”…
If the Democrats are unable to take the House, that will probably mean that a late “red wave” has saved the day for the Republicans and it will also probably mean that they will likely increase their Senate majority by a little bit.
In that scenario, we will see a lot more than “bed-wetting” from the left. Their hopes have been pinned on these midterm elections for nearly two years, and a crushing loss could set off a national temper tantrum of frightening proportions.
The Last Days Warrior Summit is the premier online event of 2018 for Christians, Conservatives and Patriots. It is a premium members-only international event that will empower and equip you with the knowledge and tools that you need as global events begin to escalate dramatically. The speaker list includes Michael Snyder, Mike Adams, Dave Daubenmire, Ray Gano, Dr. Daniel Daves, Gary Kah, Justus Knight, Doug Krieger, Lyn Leahz, Laura Maxwell and many more. Full summit access will begin on October 25th, and if you would like to register for this unprecedented event you can do so right here.
Send this article to a friend: