Traders work on the floor of the New York Stock Exchange during morning trading on November 02, 2022 in New York City. To be sure, markets and investors care about elections – just not as much as many think. Still, it's interesting that stocks have typically done well in the aftermath of midterm elections. Clarity mattersTo be sure, businesses and investors have policy preferences, with most preferring lower taxes and fewer regulations. Gridlock is goodOne argument for why stock gains could be more than just transitory is that this election is unlikely to produce a unified government.

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