The best thing that can happen for the stock market would be for Democrat Martha Coakley to lose the Massachusetts Senate race Tuesday, says CNBC’s Jim Cramer.
On his show Mad Money, Cramer said that a victory by Republican Scott Brown would doom the Democrats’ healthcare reform effort. That’s because Democrats would no longer have the 60 votes needed to circumvent a Republican filibuster.
“I think investors who are nervous about the dictatorship of the Pelosi proletariat will feel at ease, and we could have a gigantic rally off a Coakley loss and a Brown win,” Cramer said. He was referring to Democratic House Speaker Nancy Pelosi.
“It will be a signal that a more pro-business, less pro-labor government could be in front of us.”
Healthcare stocks will of course benefit from a Brown victory, Cramer says.
But these stocks already have been on a tear over the past 10 months, so they may only receive a brief bounce.
And what other shares will rise?
“Everything from the banks, which are usually in the Democrats' penalty box, to the oils, which are despised by this administration for being carbon,” Cramer said.
Many experts are bullish on the stock market regardless of what happens in Tuesday’s election.
Jeff Hirsch, editor of Stock Trader’s Almanac, says stocks will surge more than 40 percent by next year, matching the pattern for mid-term years of a presidential term.
© 2017 Newsmax Finance. All rights reserved.