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Political Risk Strikes US Equities

Via ConvergEx's Nicholas Colas, With just 26 days until the U.S. election, U.S. stock markets are starting to consider the possibility of a dramatic Republican loss - not just the Presidential contest, but the party’s hold on Congress. This would put House, Senate and White House in the same party, something that has only happened 13 times (26 years) since World War II. Capital markets famously like political gridlock, so expect some churn for the remainder of the month as the polls crab-walk their way to Election Day.
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