What Do The Midterm Results Mean For The Markets? Dive Into Policy Monitoring With FiscalNote (NYSE: NOTE)

Midterm Elections often result in a loss of power for the incumbent political party, but current data suggests that this may not be the case this year.

With the President representing the Democratic party, many experts and speculators predicted a Republican “Red Wave,” a sweeping Republican takeover of the Senate and the House. As of this writing, the “Red Wave” has yet to surface. In fact, Republicans lost a seat in the Senate, but have made significant strides in the House. 

Currently, 220 Republicans hold House seats compared to the Democrats’ 211, and only 218 seats are required for a majority. The Senate remains up for grabs; Republicans currently hold 49 seats, while the Democrats occupy 50. 

With many anticipating conclusive results in December, current voting data suggests that a single-party rule over both the Senate and the House (i.e. Congress) may not be in the books for this presidential campaign.

What does this information mean for investors?

The Impact Of Midterm Elections On The Market

A gridlocked Congress is generally considered favorable for the market. 

For bills or legislation to be passed, both parts of Congress must accept the Bill before it can be sent to the President for final approval. With each political party in control of one-half of Congress, the likelihood that market-changing Bills will pass greatly diminishes. Thus, Congress’s gridlocked state reduces investor risk. 

The passing of Bills can be quite influential on securities. The Infrastructure Bill passed by President Biden, for example, provided a catalyst for the price ascensions of a number of stocks involved in construction like Home Depot Inc. HD and Caterpillar Inc. CAT. 

Likewise, a vaccination mandate during the Covid-19 pandemic provided a catalyst for the price ascensions of biopharmaceuticals like Pfizer Inc. PFE and Moderna Corp. MRNA. 

Certain government policies can have a drastic impact on the value of securities, and investors need to beware of these to manage risk and spot opportunities.

How FiscalNote Can Help You Spot Opportunities And Risks

As an agency specialized in collecting data on the regulatory processes in the U.S. and abroad, FiscalNote NOTE may be an ideal candidate for helping investors track important policy changes.

FiscalNote’s business premise revolves around keeping stakeholders in the know about policies that directly affect them, their business, their stakeholders and their investments. This is no easy task: Since World War II, Congress has typically enacted 4 million to 6 million words of new law in each two-year Congress, according to GovTrack. This data does not include European laws and bills.

FiscalNote’s policy-monitoring solutions take the hard work out of tracking policy changes. By collating and personalizing local, state, federal and global policy into one neatly packaged digital solution, FiscalNote simplifies the political landscape. The FiscalNote platform, for example, allows customers to monitor policy issues, manage and engage stakeholders and increase team efficiency through one digital platform. 

Other FiscalNote solutions allow customers to: 

• Track and report key state legislation and regulations
• Stay ahead of policy changes within cities, counties, school districts and state boards
• Discover, monitor and take action on global policy developments
• Expand and customize team efforts
• Monitor and understand European Union legislation 
• Glean actionable policy insights from on the Hill with CQ News
• Manage PAC donations from a centralized platform

Constantly shifting policies make the economic landscape unpredictable, presenting opportunities and threats along the way. This year’s Midterm Elections may still create market uncertainty, and FiscalNote reportedly has the tools to help you navigate through them safely.

Click here to learn how to navigate the post-election landscape.

Featured Photo by Quick PS on Unsplash

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