It will come as no surprise to anyone that the relative polarization within America’s body politik is at its highest ever (in both the The House and Senate)…
but while the decision-making process remains mired in quagmired partisanship (with no party able to dominate)…
The Federal Reserve is there to ensure that politicians do not have to “go back to work,” no matter how pissed off the peasantry gets…
However, with the uncertainty surrounding the upcoming election near record highs there is one scenario that US equity investors should be very afraid of with regard the President/Senate/House combination…
Simply put, as JPMorgan details, if Trump wins in November (Republican president) but control of The Senate is lost (to the Democrats) while Republicans maintain control of The House, then US equity investors may want to take cover. Ironically a Hillary victory and the status quo of Republican House and Senate has historically been the most ‘bullish’ for US equity investors.
Source: JPMorgan
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