Political strategist Greg Valliere suggests that the important development next week won't be on Election Day, but on the day after, when the political balance of power will "shift significantly," with the Republicans gaining control in the House of Representatives and gaining "seven, eight, maybe nine" seats in the Senate. Following the Democrat's "gigantic defeat," said Valliere on Wednesday evening, "the ensuing political gridlock" will in fact be a net positive for the markets, and he also expects that the Bush Administration tax cuts will be extended before the end of this year, perhaps for as many as two or three years.
Removing the uncertainty surrounding the outcome of the election and the expiring Bush-era tax scheme may very well help corporate American "spend some of that $1 trillion they're sitting on," Valliere (left) said.
As for the economy, Valliere said he agreed with Schwab's chief investment strategist, Liz Ann Sonders (left), that 
