Why does the stock market crave a GOP victory?
Gridlock in Washington may be just what investors have been waiting for, says Costas Panagopoulos in The Christian Science Monitor
Many Democrats are distraught over the likelihood of losing the House in Tuesday's elections, says Costas Panagopoulos in The Christian Science Monitor. But they might find solace in hearing that the stock market has done twice as well in recent decades when power was split in D.C. Here, an excerpt:
So why does the stock market like a divided government? One explanation... may be that Wall Street favors the slower pace and compromises that typify lawmaking during episodes of divided government. Stability and less precipitous shifts in public policy are preferable to investors and Wall Street. Gridlock in Congress may not be ideal in many respects, but it does mean that lawmakers will devote adequate time to thinking bills through and to making deals that yield legislation that is less extreme.
Whatever the cause, the historical patterns suggest Republicans' gaining control of Congress in 2010 would probably stimulate stock performance in the short term.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Read the full article in The Christian Science Monitor.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Create an account with the same email registered to your subscription to unlock access.
-
A history of student protest at Columbia University
The Explainer Anti-Israel demonstrations at NYC's Ivy League university echo protests against Vietnam War and South African apartheid
By Harriet Marsden, The Week UK Published
-
'Trump is ruled in contempt'
Today's Newspapers A roundup of the headlines from the US front pages
By The Week Staff Published
-
Hainault sword attack: police hunt for motive
Speed Read Mental health is key line of inquiry, as detectives prepare to interview suspect
By Arion McNicoll, The Week UK Published