Midterm Madness – Midterm Election Results 🤪
For weeks and even months, the most popular term in politics has been an incoming “red wave” in the 2022 midterm elections for a variety of reasons. President Joe Biden, a Democrat, had an approval rating hovering just above 40 percent as the United States of America has been hit with some historic issues. The economy has become concerning due to the inflation crisis the US faces, and this has hit the citizens of the US in negative ways. Polls showed that the biggest concern for the people was the economy, and the current Democratic economy was clearly the issue. This, paired with the historical precedent that the party in power loses all the time in the midterms, created an equation pointing to massive wins for Republicans in both the Senate and the House. The stock market wanted this outcome to play out, and this was displayed with the markets pricing in a Republican win as consecutive rallies took place.
As we’ve learned with every previous election, the polls can be very wrong, and that is indeed what happened. In what has been a shock midterm election, the Democrats have a 50 percent chance of holding both the Senate and House as of Wednesday night. It hasn’t been a “red wave,” but rather a “red raindrop” as Democratic support was strong when it came to voting. The Senate has been considered a toss-up for a while now, but the House was supposed to swing Republican in a grand fashion. Instead, the Republicans are likely to have a very slim majority there, and it could be a Democrat hold depending on the votes that are still coming in for states in the West. The younger generation showed up in a big way, and the issue of abortion became a marquee talking point for voters compared to the economy. This looks to be one of the best performances for a president when it comes to the midterms, and it threw the markets off course. The indices fell by more than 2 percent on Thursday, and corporations are salivating for a tax cut that could occur if Republicans gained power. The future now seems unclear for the United States, and the market will now have to reevaluate the current situation.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
