Quick Thoughts: Midterms And Markets

Summary

  • While a divided US government may look appealing, there are long-term risks amid resulting gridlock.
  • The longest night belonged to the pollsters and pundits, whose predictions for a “red wave” did not come to fruition.
  • Looking at historical relationships between elections and market outcomes is flawed, as outcomes are often specific to each period. Generalization is thus difficult.

Washington Politics - Money

Douglas Rissing

By Stephen H. Dover, CFA, Chief Market Strategist and Head of Franklin Templeton Institute, Franklin Templeton

While a divided US government may look appealing, there are long-term risks amid resulting gridlock, according to Head of Franklin Templeton Institute Stephen

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Franklin Resources, Inc. (NYSE: BEN) is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over $908 billion in assets under management as of May 31, 2014. For more information, please call 1-800/DIAL BEN® or visit franklinresources.com.

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