If you’re betting on “gridlock” being good for the market, you may want to get nervous.
In California, Democrats Barbara Boxer and Jerry Brown are pulling away from Carly Fiorinia and Meg Whitman in races for Senate and Governor respectively.
In Ohio, Democrats are narrowing the gap in both the Governor and Senate races (though the Senate race still seems like a clear GOP pickup).
In Kentucky, Rand Paul is now neck and neck with his Democratic challenger, after the same poll once showed up him by 15.
As the cliche goes, there’s a lifetime between now and November 2, but if you’re looking to see whether things are widening for the GOP or tightening, this might be an early indication.
Although we hear a lot of folks talk up the benefits of gridlock this year — for stocks and the economy — we suspect the old wisdom may not apply, as the economy is addicted to stimulus, and a cold turkey shock (though healthy in the long-term) may be pretty brutal in the short and medium-terms.
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