The newly elected 114th Congress will consist of a Republican majority. The certainty about political impact on the economy and capital markets pretty much stops there. However, the news for businesses and investors is less about what will happen and more about what will not happen.
Democrats will not rule the agenda as they have in recent years and the industrial sectors that tend to perform best under Republican rule will at least be given enough room to grow to their greatest potential, absent any real or perceived barriers that may have kept a lid on upside potential in recent past.
Although the economy and stock market, on average, have historically performed better under Democratic rule, there are some industrial sectors that tend to do best when Republicans have the upper hand. Read