The Americans will soon line up outside the polling stations – will this be a democratic or republican win?

As of right now, the Republicans have a majority in both chambers of the Congress. This might change after November 6. The Democrats are currently favorites to win the majority.

Historically, the midterm elections have provided a great upswing the day after, no matter which side wins, as the election will remove any political uncertainty.

Though, investors are having optimistic expectations in case the Republicans keep their majority. And with good reason – the republicans already have a “tax-reform 2.0” ready for the voters with a $600 billion fiscal easing over 10 years. Something that will support a continued growth in the country.

Analysts have stated that a Republican in the house of representatives seems unlikely – according to them, the Democrats will win the house of representatives and the Republicans will win the majority in the Senate – this means that Donald Trump will have a divided government.

Nothing is for sure yet but one thing is certain – investors will have their eyes wide open when the markets open on November 7. According to the independent analysis house CFRA, the broad American index S&P 500 has increased with 16,7% on average 12 months after the election, since 1946.

According to Fidelity International, a Democratic win in both chambers will mean increased volatility on the markets.

It will be exciting to see what November will bring.

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