A NYSE Trader Breaks Down the Midterms Market Effect

What effect will the midterms have on the market? Kenny Polcari breaks it down for investors.
Author:
Publish date:

Kenny Polcari, director at O'Neil Securities, took a look at the different effects that the midterms could have on the market.

On Tuesday, Nov. 6, the U.S. will vote in the midterms. But why should investors care? Polcari breaks it down.

Here's what could happen if the Republicans hold the majority of seats. Polcari said that, if that were to be the case, then he believed the market would rally.

The rally would be fueled by the possible tax plan, deregulation, among other things.

"If the GOP wins both houses, I think that the market takes off," Polcari said.

However, if both parties were to split the house and senate, Polcari believes that the market wouldn't react.

"Then you get gridlock," he said. "Which the market doesn't necessarily mind."

And, finally, if the Democrats took the office, the market would "back off."

"Because, immediately what will happen is...Democrats control both houses and [they'll] try to pull back on pro-growth policies," Polcari told TheStreet.