The Impact of Political Gridlock on Stocks in 2024

The author argues that political gridlock following the midterm elections is beneficial for stocks, citing historical data that shows positive stock market performance during the nine months leading up to midterms. They predict that despite bearish sentiment and concerns over inflation and tax hikes, stocks will continue to rise in the back half of the president's third year. The article also highlights the potential impact of the 2024 election and the likelihood of a Republican-controlled Senate, which could boost business enthusiasm. Additionally, the author dismisses concerns about commercial real estate and suggests a shift towards more traditional industrial and economically sensitive stocks. Overall, they believe that gridlock and a gradual decline in inflation will contribute to positive stock market performance well into 2024.