Displaying items by tag: congress

(Washington)

The midterm elections are finally in the rearview mirror, and generally speaking, the results are exactly what the market expected. That means it may be time for a rush back into stocks after the turmoil of the last month. One analyst put it this way, saying “Following this week’s volatility and the FANGs selloff this week, we’re likely to see traders getting back in and buying the dip. The elections have been a win for both the Republicans and the Democrats, and this will bring balance to the market”.

FINSUM: We do suspect investors will breath a sigh of relief. Firstly, things went according to plan, but secondly, a split Congress is in some ways the best case scenario for stocks.

(Washington)

The midterm elections are currently dominated by two incompatible assumptions. Democrats think Trump’s low approval rating and the rash of Republican congressional retirements will lead to a big string of victories for their party. Republicans hope that growing economic confidence, underpinned by the White House’s policies, will win out. The big X-factor is now the stock market, which has been gutted over the last few days, a fact which could rattle the economic confidence of Americans. Democrats need 24 seats in the House to take back a majority. Many suspect they will win 30.

FINSUM: Trump and the Republican party are up against history (the party of the President typically does poorly in midterms), and now possibly the markets and economy.

(Washington)

There is no doubt about it, the midterm elections of this year are going to be an enormous challenge for the Republican party. As the election in Alabama last month showed, the tide has swung politically, and many Republicans looking at reelection are facing tough campaigns or have resigned rather than run and lose. Examples of the challenge abound, such as Republican congressman Frelinghuysen from New Jersey, who is facing his first real test in 23 years. History also doesn’t suggest a favorable result, as the midterm election often acts as a referendum on the White House. Democrats got beaten in the midterms after both Clinton and Obama’s elections.

FINSUM: With Trump’s approval rating quite low, it does seem like a lot of the public might retaliate against the party by voting against their GOP congressional candidates.