Tuesday’s midterm elections were widely regarded as a referendum on President Trump. However, it appears voters were not voting on the economy. Instead, the Wall Street Journal (WSJ) reported that “a surveyor of tens of thousands of voters or likely voters released Tuesday found that their top concerns were healthcare and immigration.”
What about the impact of a divided government on the U.S. economy?
North Star Investment Management reports that for investors, the “breakdown of a Republican President with a split Congress has been favorable for the stock market” while “a Democratic sweep would most likely [have] unnerve[d] the market.”
Despite what appears to have been an uneventful vote concerning the economy, questions about the overall economic strength of the U.S. remain.
Amrith Ramkumar, with the WSJ, writes that the “shifts in Congress could easily swing major indexes,” which remain fragile from “a whirlwind October that highlighted investor uncertainty focused on interest rates, growth expectations, and trade tensions.”