https://www.youtube.com/watch?v=i6OCFItOaJM
What is the likeliest outcome heading into Election Day?
Hillary Clinton will win the presidency and Democrats will take the Senate, says Hedgeye Potomac Chief Political Strategist JT Taylor. From there, it gets murkier. While the House is a toss-up, if Republicans lose “that could roil financial markets,” Taylor explains to Hedgeye CEO Keith McCullough.
The political divide will become even more stratified. “Clinton will be confronted from the left” Taylor says, by left-leaning Senators Sherrod Brown, Elizabeth Warren, and Bernie Sanders. Meanwhile, Republicans will be confronted with a more powerful “Tea Party” presence as Taylor expects Democrats to pick up more seats in both houses of Congress.
What issues should be top of mind for investors?
- Taylor’s ‘Cat 5’ Catastrophe: Swing voters turn out for Democrats; the “Never Trump” crowd doesn’t vote and Trump voters stay home; “That means the House is in play”
- Regulatory Pressure (Financial Industry): Bernie Sanders is next in line to lead the Senate Budget Committee and Sherrod Brown head the Senate Banking Committee
- Paul Ryan’s Dilemma: Ryan may run for President in 2020 so he must not have a “Do-Nothing Congress;” critical issues to watch will be infrastructure, Obamacare fixes and repatriation
All told, it’s a recipe for partisan gridlock. “Remember 2008 when Mitch McConnell’s agenda was to make sure Obama was one term president,” Taylor says. “McConnell will obviously try to impede Clinton’s agenda this time around.”
Click here to watch the full video“Clinton vs. Trump: How Election 2016 Will Impact Financial Markets.”