Kramer believes this week’s election results are favorable for equities and expects the market to move higher.
Jim Kramer said Thursday that election results in New Jersey and Virginia should help allay investor fears about the more liberal aspirations of Democrats in Washington.
“I’m not calling for complacency, but I’m saying that after Election Day this week, Wall Street should no longer have to worry about the Biden administration cracking down on big business and its beneficiaries of its profits,” says Mad Money. said the owner. “And when Wall Street isn’t worried, stocks can rally – another reason not to sell at these levels and buy more the next time a pullback occurs.”
In Virginia, wealthy Republican businessman Glenn Youngkin defeated Democrat Terry McAuliffe in a closely watched race of governors. Youngkin will take over the place of Democrat Governor Ralph Northam, putting the Republican Party in charge of the state, which President Joe Biden easy to carry in last year’s presidential election.
In New Jersey, Democratic Gov. Phil Murphy won a second term ahead of Republican Jack Chiattarelli, but the race was surprisingly close in another state that Biden wins in 2020… Also in New Jersey, longtime State Senate President Steve Sweeney lost to his Republican Edward Derr. despite the fact that Durr spent less than $ 200 on the race…
Kramer said the strength of Republican candidates – even if defeated – could worry Democrats ahead of a decisive midterm election next year. Democrats narrowly hold power in both chambers.
Kramer acknowledged that the stock market performed much better than some of the bleakest forecasts in Biden’s first year, with the S&P 500 up more than 24% since the start of the year. Biden was sworn in at the end of January.
“This is crazy money, not crazy politics, and the last thing I want to do is take sides here. But as a money guy, I can tell you that the stock market loves a dead end in Washington. He loves paralysis. He loves the government that does it. nothing, ”Kramer explained.
Tuesday’s election results, he added, likely “sealed the deal on Biden’s more leftist political commitments. They have hardly been discussed anymore, now they are dead on arrival, because the Democrats do not want to be destroyed. in the medium term next year. “
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