Politics is the art of the possible. With the recent midterm elections, the scope of what’s possible has been narrowed. Any impact the new Congress may have on the markets may turn on how the Republicans in the House choose to wield their newfound power.
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The stock market in 2022 faces a number of significant headwinds, ranging from inflation and supply chain constraints to new COVID variant breakouts and geopolitical frictions. Add another one to that list—the upcoming midterm elections.
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Mid-term elections introduce a measure of uncertainty into the markets. Will the President’s agenda be frustrated by the opposition party gaining control of one or both of the legislative chambers?
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