It’s always difficult to predict how Wall Street will react to political changes. And experts say the expected Republican victory in congressional elections next week could augur mixed results for financial markets, CNBC reports.
“If the changes do come to fruition and the Republicans do gain the House and maybe even control of the Senate, the [stock] market will react positively toward that," says Peter Cardillo, chief economist at Avalon Partners in New York.
"It'll be positive in the short term, but in the long term it could have a negative effect. The Republicans will do everything in their power to stop excessive spending, and that means more austerity on the way. That could mean the market will have to take a different approach."
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