Author Topic: If Democrats win: Georgia runoff results could trigger a 10% stock market selloff: Strategist  (Read 266 times)

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Offline IsailedawayfromFR

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Mon, January 4, 2021, 9:11 AM CST
Investors will have their eyes peeled on the Georgia run-off elections on Tuesday to determine which party will control the Senate. A Democratic win of the two contested Senate seats could trigger a selloff in the markets, according to Oppenheimer strategist John Stoltzfus.

“Should the Democrats win both seats, we expect the S&P 500 to become vulnerable to a downdraft in the neighborhood of 6% to 10%,” wrote Stoltzfus in a note to investors.

“In our experience the markets prefer that Washington’s Capitol Hill have enough checks and balances in place to keep political power out of just one party’s hands,” he added.

The Democrats already control the House of Representatives. A Democratic Senate sweep “would bode ill for business with the likelihood that corporate tax rates could rise substantially,” added Stolzfus.

“In addition, a Democratic sweep in Georgia would likely see a boost in new government program creation and spending at a time when many voters, market participants and business leaders are concerned about the sizable level of debt that the Treasury has had to take on to provide a financial ‘bridge over troubled water’ via fiscal stimulus,” he added.
https://finance.yahoo.com/news/georgia-runoff-results-could-trigger-a-10-stock-market-selloff-151106040.html

It will be just the beginning.....
No punishment, in my opinion, is too great, for the man who can build his greatness upon his country's ruin~  George Washington