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Markets rally on a split Congress

Markets rally on a split Congress

Prerna Chandak, MBA

Vice President ETFs

Joe Biden has been elected the 46th President of the United States, but the Blue Wave implied by pre-election polls did not come to pass. Democrats hold a narrower majority in the House of Representatives and Republicans appear likely to maintain their Senate majority.

Markets reacted positively to the prospect of a divided Congress, which would impose bipartisanship constraints on some of Biden’s less investor-friendly policies.

In their November commentary, Mackenzie’s Chief Economist Todd Mattina and Economist Jules Boudreau examine how a divided Congress may be a good thing for long-run economic growth. They expect the two parties could find common ground on issues including:

•   Providing at least modest stimulus to dampen the economic effects of COVID-19

•   Long-awaited infrastructure spending

•   Benign onshoring policies

For more timely insights from Todd and Jules, read their November commentary, “Markets rally on a split Congress”.

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