While some investment advisors are professing that Tuesday's midterm elections will "make Washington work and lead to legislation that helps them," Thorn Run's Jason Rosenstock tells Investment News that the political landscape for the financial sector may not be as favorable as some may suggest. Although Republicans took the majority in the Senate and expanded their margins in the House, dysfunction in Washington will remain a barrier to achieving major reforms. “I'm not sure the White House and the new majorities are going to be able to reach a 'Kumbaya' moment," said Rosenstock.
Advisers hope GOP Senate will be good for Washington productivity
Investment advisers expressed optimism on Wednesday that the Republican takeover of the Senate might make Washington work and lead to legislation that helps them.
In Tuesday's midterm elections, the GOP picked up seven Senate seats to gain control of the chamber, 52-45. Three seats — in Alaska, Virginia and Louisiana — have yet to be decided. In the House, Republicans increased their majority by 14 seats to 243-175, with several races still up in the air…
“The political reality that created the environment last night hasn't really changed,” said Jason Rosenstock, a partner at Thorn Run Partners, a Washington consulting firm. “I'm not sure the White House and the new majorities are going to be able to reach a 'Kumbaya' moment.”