Midterms Brought Gridlock, Likely Paving Way for Good Returns

Midterms Brought Gridlock, Likely Paving Way for Good Returns

As always, our analysis is intentionally non-partisan, focusing on political developments' likely impact on stocks. We favor neither party nor any politician and generally consider partisan bias blinding—a big risk for investors.

And with that, midterms are in  the books! The polls are closed, the ballots are being tallied, and early returns show the Republicans keeping the Senate while the Democrats pick up House seats—probably enough for control. Control didn't swing radically in either direction. While both parties will probably claim victory, for investors, the real winner should be gridlock—and stocks, as midterms' completion ushers in the most bullish part of the presidential cycle.

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