How markets are reacting to the presidential election
Hosted by David Brancaccio
There is no verdict in the presidential race — but is there enough information now for companies and market participants to start repositioning themselves?
Who will control the Senate? … Also zeroing in on how the Senate shakes out is Karen Petrou, managing partner of the Washington-based economic consulting firm Federal Financial Analytics. “I think we do know that the Senate control, whoever ultimately holds it, will be narrow,” Petrou said. “And that will give the president, whoever he is, greater or lesser opportunity to do what he will choose to do. It is not going to be an overwhelming ‘triple-blue scenario’ in which a Biden administration would have unlimited power to do a progressive economic agenda.” Petrou said it’s hard to read too much into all of the market movement Wednesday, though. “If I were reading anything into all of the short-term movements of the markets, I’d lose my mind, because none of that makes any sense,” she said. “Markets, when they’re behaving properly, which I wish they would, need certainty about profits, certainty about tax policy, certainties about growth, and we have none of that. I’m afraid we won’t get it for some time yet to come.” Listen to Brancaccio’s conversation with Karen Petrou click here.