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A Stock Trader’s Guide to the US Midterm Elections

  • Cannabis, healthcare, energy are among industries to watch
  • Political gridlock could be best scenario for equity investors
Bloomberg business news
What's the Best Election Outcome for US Markets?
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Morgan Stanley and JPMorgan Chase & Co. are staking out bullish positions on equities as voters cast their ballots in midterm elections that are expected to end Democrats’ control of the legislative branch and usher in a period of gridlock.

Divided governments have a harder time agreeing to new legislation, and therefore tend to preserve the status quo, reducing uncertainty. That could bring about lower bond yields and higher equity prices, Morgan Stanley’s chief US equity strategist Michael Wilson said in a note Monday.