Election Day Turn Around In The Market? Real Cap Daily #20
It’s Election Day and America is heading to the polls. If the control of government becomes divided, will it change the stock and housing market?
The stock market historically loves divided government, meaning, there isn’t one party in control of the Executive and Legislative branches. In midterm elections, the stock market has risen when this occurs. Fundamentally, will anything change between Tuesday and Thursday. Inflation is still high, government spending is still high, and the Fed will be trying to combat it. The election is important for our future, the next 2 years. And we may get a bounce from divided government.
On Thursday, the CPI figures come out to let us know if inflation is remaining high. I would argue, it will still be high at or above 8%. This will continue to make the case that the Fed will need to raise rates further.
We will continue to watch as events progress. Housing supply is slowly rising, but not to the levels of 2008. Be on the lookout for the commercial real estate market.
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