MidTerm Exam

Northern Trust
By October 26, 2018 11:02

MidTerm Exam

We think the U.S. midterm elections on November 6 will likely be a bigger media event than a market event. Current polls indicate the Democrats may take control of the House of Representatives, but the Republicans will hold control of the Senate. So a divided Congress will be in no better position to pass legislation than they are today — but the market hasn’t been expecting any major legislation to be forthcoming. Under a Republican Senate/Democratic House scenario, we envision a modestly positive impact on healthcare stocks and a modestly negative outcome for the consumer sector. While polling data and history point to the likelihood of the Democrats taking control of the House, the recent poor predictive record of polls keeps us from being too confident in that outcome. The good news is that we don’t think the economic or investing outlook will be much different in that scenario. 

Northern Trust
By October 26, 2018 11:02

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