As a student of politics, I follow election news with a sharp eye. But as a student of investing, I take a different approach because midterm elections point to potential market changes over the next two years.
Republicans and Democrats are in tight races across the country that will change the makeup of the U.S. House of Representatives and Senate. Right now, Democrats hold Congress. But pundits expect that to change after next Tuesday.
If Republicans seize control of the House, Senate or both, the gridlock that will follow won’t be great news for legislation — but will be for investors.
Previous market trends surrounding midterm elections can gauge how the market will look.
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