The stock market has always loved political gridlock. The reason? I suppose because the more enfeebled D.C. is, the less they can muck things up.

Imagine the likely political situation in which we have President Biden and a McConnell-led Senate. This is almost certainly going to be the case. Green New Deal? Not going to happen. Big tax increase? Not going to happen. Stimulus package to bail out blue states? Not going to happen. At this point, I think Biden could ask for a Hug a Puppy Day commemoration, and they wouldn’t let it through. So there’s going to be this huge government structure in place that gets absolutely nothing done.

As far as Wall Street goes, that’s just fine and dandy, as we’ve seen with the explosive move in equities every since we opened on Sunday……..