This blog is not going to be political. However, we can acknowledge that there is a crossroads between politics and economics. Instead of discussing politics, I will be discussing the resulting economic consequences of political decisions. The Georgia Senate races are upcoming and there could be a slight shift in the market.
Regardless of political affiliation, the stock market typically seems to favor at least one chamber of Congress to be the opposite party of the President. The market recognizes that if this is the case, there is unlikely to be any major changes in regulation, taxes, and other economic areas. Regardless of who wins, we can expect a sell-off when the winners are official due to political panic. This is mostly to be ignored as it will be an overreaction. If Democrats gain a majority in the Senate, there is a clear path towards marijuana legalization on the federal level. This decision would be symbolic in nature at this point. However, there are definitely stocks in this industry worth putting on your watch list. (My personal preferences are ACB and TLRY). I will be keeping a close eye on that sector regardless. Another sector that seems to benefit is electric vehicles and green energy as Democrats create policies in accordance with their environmentally friendly platform. It also remains to be seen how both Democrats and Republicans will regulate cryptocurrency. Though if Ripple is any indication, there is most likely going to be more regulation soon. Again, I won’t get into my personal politics here. However, I will say this: I am confident that however the market as a whole is going to act long term, it will do so regardless of politics. Politics makes up about 5 to 10% of the influence on the stock market. Enough to make it drop short-term? Of course, but not enough to crash it or pump it up for longer than a week or so.
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