JECohen: Divided government may bring greater policy predictability for markets
SPY•JECohen said Democratic control of Congress may limit major policy changes and create a more predictable environment for markets. The brief also cited voter restrictions on data center development in 37 jurisdictions and third-quarter consumer spending growth of 2.5% annualized.
1. Policy and economic signals
Democratic control of Congress creates divided government, potentially limiting major policy changes and providing a more predictable environment for markets. Early results showed voters restricted data center development in 37 jurisdictions, while third-quarter consumer spending grew at a 2.5% annualized rate despite near-record-low sentiment. JECohen said long-term portfolio outcomes depend more on economic fundamentals than political shifts.
