What happens if Republicans win the majority in 2024?

Former President Donald Trump has announced Senator JD Vance (R-Oh.) as his vice presidential pick just days after surviving an assassination attempt in Pennsylvania. Unlimited co-founder, CEO, and CIO Bob Elliott joins Market Domination Overtime to discuss how the market (^DJI, ^IXIC, ^GSPC) is reacting to the news.

Elliott notes that following the assassination attempt, the odds of Trump winning the election have increased.

"What we're seeing is actually gold (GC=F) as one of the best-performing assets in the market, reflective of the fact that we're likely to get large deficits ahead as the Republicans have a higher probability of controlling all three chambers of the US government. We're seeing bonds sell off as a function of growth likely being stronger and having those larger deficits and higher inflation.

"And we're seeing some stock rally, but not that much stock rally in the market, reflecting the fact that it's going to be challenging to keep up this level of growth with those levels of deficits and upward pressure on interest rates."

Elliott adds that if Republicans obtain control over Congress, a less divided government would create some uncertainty. As Republicans would have an easier time passing legislation with the majority, Elliott would expect "even more deficit spending and particularly corporate beneficial deficit spending." However, he notes that the lack of movement in the stock market currently "is a reflection of that balance of increased uncertainty [and] more favorable policy."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Melanie Riehl