Washington (November 06, 2018): The U.S. mid-term election is the biggest political event of this year over in the United States.
The victory result of this election would not only have an impact on the economic conditions of the United States, but also in several other countries around the globe.
it may not be wrong to say that these elections would act as a vote of confidence for Mr. Trump. Americans will have a chance to have their say about Trump’s policies and show their support for the president.
Let’s keep the focus on the markets and discuss the landscape for traders on the back of these elections. Historically speaking, mid-term elections do not usually carry much weight and we have not seen any significant impact on the dollar price or the financial markets.Looking back in history since 1922, the market average performance 9 months prior to the mid-term election was 0.3% and 12 months after it was 17.1%.
However, this year we are talking about the Trump administration and given the amount of controversy we have around this government, these elections could for the first time in history bring some unexpected movement in the financial markets.
Though Trump’s name is not on the ballot anywhere across the US, these elections are all about Donald Trump.He has put himself right bang in the centre of the campaign, and has been hurtling round the country energetically in these final days, Air Force One the taxpayer-funded backdrop to these highly partisan occasions.
According to the latest polls, the Democrats could take control of the House and the Republicans would continue to control its majority in the Senate.
However, polls are nothing but indications and by learning from the past, one cannot rely on them entirely.