Yep: "Gridlock Is Good" Is A Total Myth

Great table from Fidelity (via PragCap) on whether gridlock is actually good for markets, like so many people say it is.

The answer: nope.

Here’s how it breaks down:


Photo: Fidelity

The whole “gridlock is good” idea probably comes from the 1994-2000 gridlock rally, which was a unique bubbly period (especially the latter half) and really doesn’t have any bearing on the scene today.

And if any states or major banks veer towards default during the coming gridlock and can’t find a lifeline… watch out.

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