With Republicans maintaining a slim lead in the Senate and Democrats taking a small lead in the house, gridlock will prevail. All this anticipation, polling, and build-up, in retrospect, for nothing. This is why I did not even blog about the midterms until now, because I suspected that the results would be underwhelming and indecisive. You know it’s bad when political bloggers are not even covering it or only covering it in a single post. I would have liked to see a ‘red wave’ even if it meant a short-term loss to investment.
The results were pretty much in-line with polls. A strongly divided House and Senate limits Trump’s ability to do much. On the strength of the stock market and economy, I def. think he’ll be reelected, but I’m not too optimistic about his second term either as far as domestic policy goes (Trump has had much more success with foreign policy). It is Neoreaction 101 that democracy does not work yet many fooled themselves into thinking this time will be different. Maybe he can do an executive order on immigration soon. Maybe try to secure funding for wall. It’s hard to find much to be optimistic about as far any sort of immigration reform is concerned.
Gridlock is good news for the stock market, and the S&P 500 is up 1.3% today in addition to big gains earlier in the week and last week. Still remain fully invested. S&P 3,000 early next year is easily doable.