DOW Jones Rise, will Democrats Win?
The DOW rose on Tuesday as analysts predict a win for Democrats in Georgia, a state that will determine whether the Joe administration will have complete control of the Senate. A unified House of Representatives and Congress means the liberal party will easily implement moves to cement their political agenda in the next two years, including a possible repeal of the corporate tax law, expansion of fiscal policy, and possibly more taxes down the road.
The political scene in the United States has been nothing short of acrimonious. For instance, the run up to the Nov 3 Presidential Election was mired with violence and tension, causing investors to move their capital to value preserving assets like gold and Bitcoin. Compounded by the coronavirus pandemic, markets remain jittery as a new variant of the pathogen forces even more strict lockdowns in some parts of the world. However, this week's focus is on Georgia and whether President Trump will emerge as a winner handing Republicans control of the Senate. A win for Republicans will crimp Joe's plan, supporting the stock market in the medium term.
Impact on the Dow Jones:
Bearish. Polls predict a tight race. Results won't be known until after some days. Before then, the markets will be reliant on predictions that might cause either the index to slip or whipsaw.
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