Posted on 11/07/2018 2:20:25 PM PST by Red Badger
Wall Street loves a divided government in Washington. It’s the scenario most likely to result in fiscal responsibility and minimal meddling in the economy.
It’s the investors reacting to gridlock. They love it when government can’t enact bad legislation. 8>)
That’s part of it. Another part is that the labor market is very tight right now and larger salary and wage packages mean less money to distribute to stock holders. Wall Street also loves cheap labor and immigration.
Gridlock is good.................unless you are stuck in traffic!.................
If less money is distributed to stockholders then shouldn’t the stock market DECLINE?
Gridlock is good.
They say markets like gridlock and all that. That’s the story line. If so then markets don’t like additional tax cuts and other Trump pro-growth policies?
I think it’s more complicated. Markets can’t like Nancy Pelosi as Speaker.
But they expect split govenment will not build a wall. More immigrants = lower wages = more profit. Your scenario would be from a big conservative Republican (not chamber of commerce Republican) win.
Wednesday marked the biggest post-midterms gain for both the Dow and S&P 500 since the day after the 1982 contests, when the indexes surged 4.3 percent and 3.9 percent, respectively.
...
And then the market declined for the next six months.
But it is different now. At the end of 1982 we were recovering from the Volcker recession.
The markets mainly soared today because the uncertainty is over. I did ok today (I day trade). I figured it would go up a lot today and it did. December should be interesting.
“Tech shares rose” Of course: their Majority Leader is back!
LOL!
Now donors for both Parties get their goodies. Twice as much for the crooked, half as much for Americans.
Trump will fight ‘em and have some success, but less than he would have.
"McDonald's announced a 90% reduction in their cash dividend today -- resulting in a massive rise in the company's stock price!" -- said nobody, ever.
Divided government is fiscally responsible? Lol you must be kidding. The markets are excited because in divided government, the dems have to be bribed with new spending in order to get our own agenda items considered.
It means there is about to be an orgy of federal spending.
Exactly... you nailed it.
"Fiscal responsibility" with Maxine Waters chairing the Banking Committee?
"Fiscal responsibility" with the worst of the TERMINALLY INSANE DEMS heading all of the other House committees?
Investigation after investigation of the president, every member of his family, back to his great grandfather, one into Kavanaugh, and manhy into every single Cabinet member and THAT just for starters; not to mention the IMPEACHMENT CRUD and the economy AND the markets are going to roil worse than ever!
No it isn’t; not when Trump is the president and he is trying to fix the mess all of his predecessors left him.
Yes. Many investors, in spite of their individual opinions against more manufacturing on U.S. soil and their paranoia about the population expanding, must try to make money. So technically inclined Americans win, and investors invest more (technically inclined Americans being those who would do well with more manufacturing).
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