Posted on 01/04/2021 8:15:00 AM PST by lasereye
Investors will have their eyes peeled on the Georgia run-off elections on Tuesday to determine which party will control the Senate. A Democratic win of the two contested Senate seats could trigger a selloff in the markets, according to Oppenheimer strategist John Stoltzfus.
“Should the Democrats win both seats, we expect the S&P 500 to become vulnerable to a downdraft in the neighborhood of 6% to 10%,” wrote Stoltzfus in a note to investors.
“In our experience the markets prefer that Washington’s Capitol Hill have enough checks and balances in place to keep political power out of just one party’s hands,” he added.
The Democrats already control the House of Representatives. A Democratic Senate sweep “would bode ill for business with the likelihood that corporate tax rates could rise substantially,” added Stolzfus.
“In addition, a Democratic sweep in Georgia would likely see a boost in new government program creation and spending at a time when many voters, market participants and business leaders are concerned about the sizable level of debt that the Treasury has had to take on to provide a financial ‘bridge over troubled water’ via fiscal stimulus,” he added.
(Excerpt) Read more at finance.yahoo.com ...
If only the orange man didn’t trigger hysterical reactions no matter what he said or did
Wall street makes money both ways. Trading volume is their bread and butter. Investors play the game rigged by the house. Just a form of casino betting IMO.
market selling off some now
betting markets are showing odds that Dems take both seats in GA>
good analysis from someone that was posted here convinced me that Mitch doesnt really care..makes more money if he is in the minority
Yep. That’s why I cashed out almost 20 years ago. Sure, I may have lost money, but it all depends on what I put it into instead, and my heart rate. :)
It’s now just gambling.
Then how do we explain the stock market's huge rise during Trump's first two years in office? Is this guy stupid?
They think they can buy favor and be one of few that are not harmed.
Basic math considering out debt suggests it falls by 50% or more in the next few years. Possibly sooner.
DOW, S&P, Nasdaq, gold, silver all up. Oil down. Makes no sense to me.
I surprised that Wall Street isn’t run by the Casino Indians.
That’s stupid, the Dems will be able to get all kinds of socialism through the senate even if the Republicans win both races.
> A Democratic Senate sweep “would bode ill for business with the likelihood that corporate tax rates could rise substantially,” added Stolzfus. <
He’s right about that. But where else can you put your money these days except into stocks? Into bonds paying one percent?
So I’m guessing (in my usual uneducated way) that any stock dip would only be temporary. I would welcome any counterargument to that.
Democrats don’t have any stock. Those that do can spare a billion.
This anticipates the destruction of the economy that will certainly follow a Democrat victory. It will be blamed on Trump and characterized as the ‘new normal ‘.
I think many of the oligarchs on Wall St have so much damn money that they don’t care if there is a 10% selloff. Dems will do their job at providing monopoly power by extinguishing all competition and providing free Fed money when really needed. Also, they are actually scared of violence from the left if they support the Republicans. Have no fear of the right.
LOL. You don’t. If liberals had sense they wouldn’t be liberals.
US TIPS index is paying in excess of 7%
> Then how do we explain the stock market’s huge rise during Trump’s first two years in office? <
As I noted elsewhere, I think a large part of that is due to the low interest rates on bonds and CDs. If you want to invest for retirement (or anything else) these days, you almost have to be in the stock market. And that demand is pushing up prices.
Doesn’t really matter who is president, or who controls Congress.
Just my two cents. (And we all know what two cents is worth these days.)
The market is at all time highs so we all know the drill.
One cannot time the market but I’ve done well just parking and leaving a diversified mix of it in blue chips and bond funds for decades. It’s called lazy investing.
Money for nothing and ... well you know.
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