It's been a tumultuous 2020 and election cycle. Today Alex Cabot and Ed Lambert of Birch Run Financial will break down what this year's results will mean for the economy as whole and individual investors.
Ed starts with some perspective on where we are, with a likely Democratic President and House, balanced by a likely Republican Senate. Divided government means modest legislation, so we could be looking at a limited stimulus package to come. Should the Democrats take the Senate (via runoff elections in Georgia), we could be looking at a larger stimulus bill, more legislation on climate and healthcare, and a more likely tax increase.
Ed also explains the role of the Federal Reserve and chair Jay Powell. The key to an economic recovery, however, is getting the Coronavirus under control.
In terms of investors, Alex gives us historical perspective, and some promising news about how the markets have performed under divided governments. Of course, past performance doesn't guarantee future results, but the data we have seem to favor divided government.
Alex also explains the role of the Fed in our economy, with the caveat that the economy is driven largely by the population as a whole.
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