A divided Congress is good for U.S. stocks, market strategist Michael Lee said on the heels of the critical midterm election.
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“Divided government has historically been in the best playing field for stocks,” he said on FOX Business’ “Mornings with Maria” on Wednesday. “We went into this election with a fantastic economy, one that’s only going to improve from here and I don’t think that thesis changed one bit.”
U.S. stock futures rose on Wednesday, as Republicans maintained control of the Senate and Democrats took control of the House.
In Lee’s opinion a Republican House would be too much to manage.
“I think had the Republicans held the House, you would have gotten the chance for additional fiscal stimulus, maybe we get some sort of infrastructure bill,” he said. “I just think there are too many moving parts and there’s too much compromise involved for something like that to happen.”
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Even so, Lee added that the economy is on fire, and nothing can stop it unless Congress rolls back President Trump’s Tax Cuts and Jobs Act of 2017.
“You had a corporate tax cut that only went into effect on the 22nd of December last year and it really was more about tax reform and structural reform the way business is done in the United States,” he said. “The effects of that are only truly going to be seen starting in the middle of next year. We’ve had some short-term bump out of it, but that’s going to last for many years and we are entering what is going to be the longest business cycle we’ve ever had in the United States.”
Trump in a series of tweets on Wednesday morning congratulated the Republican Party on the “Big Victory.” “Now we can all get back to work and get things done,” he said.
