Investors on Wall Street are hoping the market will react positively to the Election Day results.
With so much economic uncertainty, it's hard to know how the market will respond. However, there is one interesting trend: In 17 of the last 19 midterms, the stock market has always outperformed six months from election. KTRH moneyman Pat Shinn believes there are two reasons why.
“The uncertainty surrounding elections is over. Then the party that is not in power gains seats, you get gridlock, and the market likes gridlock,” Shinn explained.
Which means if Republicans gain more seats in Congress, there's a higher chance of gridlock, and in an odd way, a higher chance of stocks going up.
Shinn warns that a market rebound is not guaranteed, though. High inflation and fears of a recession has made this year different than in years past.