Big Money predicts the Dems take the House

We aren't even done with the primaries yet, but Wall Street has begun betting on the results.

Fund managers from Federated Investors, OppenheimerFunds, and BMO Global Asset Management are among those who are repositioning their portfolios and seeing cash as more attractive with the Nov. 6 elections less than 100 days away.

Chief among their concerns: a so-called Blue Wave of Democratic victories could end the Republican Party’s single-party control of the White House and Congress, leading to both more investigations into possible abuses by the Trump administration and more stock market volatility.
...
Yet a victory by more progressive Democrats in the midterm elections could lead to a greater regulatory focus on financial and technology firms that have so far received a pass from the Trump administration, said Jon Adams, senior investment strategist at BMO Global Asset Management,

A victory by progressive Democrats may also lessen the likelihood of a bipartisan deal on infrastructure and strengthen calls for reversing corporate tax cuts, he said.

It is a safe bet that the Democrats taking back the House will lead to corruption investigations. How far those investigations go depends on the House leadership, and that is currently in flux.
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It's interesting how the less "out of step" the Dems are, the worst they do in elections.
My take-away from that is: don't listen to the opinions of your opponents.

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EdMass's picture

From your post, this appears to be Wall Street hedging their bets, not backing a Dem takeover.

When they move to cash, its a hedge and they have no idea what is going to happen.

It is also well established that a significant portion of Wall Street have been and are big time Dem $$$ supporters. All friggin 1%rs that like the easy ride the they get from Chuckie et al when the Corprocrats take control.

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Prof: Nancy! I’m going to Greece!
Nancy: And swim the English Channel?
Prof: No. No. To ancient Greece where burning Sapho stood beside the wine dark sea. Wa de do da! Nancy, I’ve invented a time machine!

Firesign Theater

Stop the War!

@EdMass Pay to play both sides. Heads they win/tales we lose.

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Idolizing a politician is like believing the stripper really likes you.

detroitmechworks's picture

Sorry, couldn't resist, but whenever I hear about corporations making bets... my thoughts drift to this episode.

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I do not pretend I know what I do not know.

k9disc's picture

sometime.

Much can be said quickly in a Star Trek scene. Between them and Monty Python you can probably communicate just about any political idea you need. Wink

@detroitmechworks

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“Tactics without strategy is the noise before defeat.” ~ Sun Tzu

EdMass's picture

@detroitmechworks

trainer/thrall. It's just a fact. Not a value judgement.

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Prof: Nancy! I’m going to Greece!
Nancy: And swim the English Channel?
Prof: No. No. To ancient Greece where burning Sapho stood beside the wine dark sea. Wa de do da! Nancy, I’ve invented a time machine!

Firesign Theater

Stop the War!

Wall St. gets.

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Pluto's Republic's picture

Plus the turnover of seats is stacked to favor them. And the first midterm works out great for the underdog.

But, I am having a hard time seeing much in the way of lasting electoral gains for the Democrats. There remains a vast disconnect between the Party professionals and the People. Party leaders and political dwellers in the NY–DC corridor have absolutely no idea that something fundamental has changed in the political culture. Thus, every time they open their mouths, they alienate a growing number of their constituancy..

This structural disconnect has the Democratic Party leaders smugly assuming that voters have nowhere else to go. They believe they represent the opposite of the reviled Donald Trump. These binary bamboozles have always worked for them in the past.

But voters out here have changed. They have developed a few populist principles and they are crystal clear on the fact that the current Party cabal does not represent them in any way. They want a political party that matches their ideology; one that stands firmly to the left of center.

Voters may decide they are not willing wait for basic health care or the forgiveness of crippling college debt. Righting these wrongs is increasingly seen as an emergency and that's how they expect the Party to represent them. If the Democratic leaders arent feeling it, then voters will certainly be repulsed. Perhaps the People will calculate that it is better to give the Republicans enough rope to hang themselves and kill the corrupt empire, sooner rather than slowly. This would, after all, fuel the People's Coalition.

For their part, the Republicans seemed poised to make a fatal mistake in election strategy going forward. They are going to mimic Hillary's losing campaign strategy. They plan to ignore all the issues and run against the word socialism relentlessly. Like the Democrats, they have no clue what's really going on out here — and they are scared by the trends they see:

The Young Democratic Socialists of America organization now claims to have more than 250 chapters on campuses across the country, a dramatic increase from just 15 chapters in 2016.

Democratic Socialist students will be convening in Minneapolis this August for YDSA’s 2018 Summer Convention, which will focus on “key decisions” for the academic year, electing new NCC members, and holding “skills trainings” where student attendees will be able to “learn from other young socialists in order to hit the ground running” during the school year.

Past summer conventions have included “Anti-Oppression Caucuses & Ally Groups” where students can share “experiences and strategies for combating oppression” and workshops on topics including “socialist feminism, history of the Labor Movement, Ecosocialism, Democratic Socialism, Social Media Strategies, and more.”

The Young Democratic Socialist constitution supports affirmative action, increasing access to reproductive and sexual healthcare, including abortion, for all, ending U.S. imperialist conquest abroad, shifting away from our reliance on dirty and unhealthy energy sources, ending environmental racism, and redirecting our collective tax dollars to benefit all of us through quality public services.

What we know heading into the mid-term is that neither Party is committed to delivering a decent quality of life to all Americans. They don't know that is their job; their number one priority. Both Parties are in for a shock, I think.

This may also be the reason that the Intelligence agencies doubled down on Russia, Russia, Russia, today, when they announced that "Russia is already(!) meddeling in the 2018 mid-term elections."

Who makes announcements like that? [face-palm]

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____________________
Those who can make you believe absurdities can make you commit atrocities.
— Voltaire

Pluto's Republic's picture

It is a safe bet that the Democrats taking back the House will lead to corruption investigations. How far those investigations go depends on the House leadership, and that is currently in flux.

Corruption investigations against whom? Politicians? Wall Street?

They are hardly in a position to investigate anything without incriminating themselves, I would think.

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____________________
Those who can make you believe absurdities can make you commit atrocities.
— Voltaire

@Pluto's Republic
and maybe political enemies in the GOP.

Repubs proved with Bill Clinton that hypocrisy is no impediment to corruption investigations.

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