What Election Day Means For Markets: 7 Takes From My Favorite Investors

My friends Dave Collum, Mark Spiegel, Chris DeMuth, Jack Boroudjian, Montana Skeptic, Jason Burack and Anton Wahlman weigh in on what they think.

Obviously with today being election day, the story secondary to who does and does not win their respective races will be: what do the final results mean for the market and investments going forward?

This question holds even more prominence in 2022 because inflation is potentially the top political issue on the ballot, as I predicted it would be very early on in the year, before it became a hotly contested, fever-pitch item. (It’s funny to revisit some predictions on inflation from November 2021 here, before the CPI blew up to astronomical figures).

As a result, the election’s effect on the economy and the market could likely be far more profound than past mid-term elections.

I’m sure by now everyone has heard the analysis of every lobotomized automaton on financial news networks about what will become of markets this week, pending the outcome of today’s results. Keeping this in mind, I wanted to reach out to some of the people whose opinions I have found to be enlightening over the last decade and offer up their takes on the situation. Because, God knows, you’re not going to catch most of these people on television anytime soon.

Here’s their takes on what we could be in for with the election and markets.

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Anton Wahlman - Former Sell Side Analyst

I have two scenarios for the market impact of tomorrow’s election:

Scenario 1: Big Republican Gains

Both of my scenarios have Republicans winning both houses of Congress. However, in the “big win” scenario, in which Republicans end up with at least 52 Senate seats, preferably 53 or even 54, I think a positive market reaction -- and there will be one, for perhaps a few short days -- will prove short-lived.  There are two reasons for this.