@crazyguy _ I think the markets do best with divided Governments._
It used to be so until the 1990’s. The Republicans, with Newt Gingrich as Speaker of the House, seemed to embark on a course of obstructionism. That’s when the Federal Budget was transformed from a real budget to a series of “continuing resolutions”. That’s why the Affordable Care Act (aka Obamacare”) turned out to be a pale shadow if what it could have been in its original concept. The divisiveness and polarization. This has led to the Republican mantra becoming something like “compromise is failure”.
But I digress…I think the markets are rising with confidence that the Biden administration signals a desired return to “normal”...although with the pandemic no-one knows when that might happen, or how the “new normal” might look.
There is a lot more to the markets at this time than just the party of the incoming administration. Not only is the economy being ravaged by the pandemic, but there are a lot of other issues that investors seem to bob optimistic about with a Biden administration. This country’s politics are so oppositional that people are seriously talking about armed insurrection. We have had so many named tropical storms that we had to go past the Latin alphabet and name them Alpha, Beta, etc. There are communities that are still suffering from the effects of wildfires this past season. There are so many indicators that investors see that have been crowded out of the nation’s consciousness, each one if which would make headlines otherwise.