Bewildering Ballots

Despite a lack of clarity about who the election winners will be, we can be certain that large fiscal stimulus is a loser. Market hopes of unified government leading to trillions in aid have been largely dashed as divided government is again most likely. Even if one party sweeps both ends of Pennsylvania Avenue, majorities in both chambers will be excruciatingly thin, precluding bold initiatives, and ushering in weaker growth.