It’s likely the market won’t even blink at the midterm election results, analysts say. Currently the House is forecast to go to the Democrats, while the Senate is predicted to remain firmly in Republican control.
And while everyone is talking about a “blue wave” in this election (sweeping Democratic victory), Greg Valliere, chief global strategist for Horizon Investments, said we’ll see a different wave: a wave of exits.
“It’s normal after a midterm election for people to leave the White House,” Valliere said. “And oh boy, are we going to have an exodus. You know, I think [Commerce Secretary] Wilbur Ross, and maybe, unfortunately, [Defense Secretary James] Mattis, Sarah Huckabee — the list goes on and on and on of people who will leave.”
“But the big players, the three big players, stay in place: Donald Trump, Robert Mueller, and [Federal Reserve Chair] Jay Powell,” he continued.
Valliere said the “real” stories in Washington – the Fed and China – will “proceed regardless of the election”.
“Once this election is over, we go right to the next stories,” Valliere said. “Trump and Xi meeting later in the month. The 2020 race. What is Mueller up to. A long list of very interesting stories will then get more traction.”
“But I think in terms of this election, it’s pretty hard to spin this as having a dramatic impact on the markets,” he said.
Kristin Myers is a reporter at Yahoo Finance. Follow her on Twitter.
Read more:
Cannabis investor: ‘It’s not just about Canada. It’s not just about the US’
‘Trumponomics’ author: ‘Trump sure looks like a genius right now’ on the Fed
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.