Strategist Who Predicted 2016 Sees GOP Midterm Sweep Due to Economy

Wall Street veteran strategist Mark Grant, who predicted 2016, sees a GOP midterm sweep thanks to the robust Trump economy.

"The reason is there is a tremendous amount of people that have been helped by this economy. They have jobs, their wages have gone up, they're living better, and they don't want to jeopardize it," Grant, chief global strategist at investment bank B. Riley FBR, told CNBC.

"From a market perspective, I'm hopeful Republicans maintain control of both the House and the Senate," said Grant, who argued that Democrats winning the House, or winning the House and the Senate, would put President Donald Trump's economic agenda at risk, which could stall the seemingly endless bull market.

On the morning of Election Day 2016, Grant said investors would be smart to buy stocks in the event of a Trump surprise, CNBC.com said. He had been saying ahead of the voting that Trump could win.

To be sure, U.S. stocks rose on Tuesday, as strong earnings and easing of trade tensions lifted materials and industrial sectors, but trading volumes were light as uncertainty about the outcome of U.S. midterm elections kept investors on the sidelines, Reuters reported.

Financial markets are bracing for President Donald Trump’s Republican party losing control of the House of Representatives, while retaining the Senate.

A political gridlock between the White House and Congress could hinder Trump’s pro-business agenda and raise concerns about political instability, but most analysts say this may not be the worst outcome for the stock market.

Many fear that there could be a sharp selloff in the market if the Democrats sweep both the House and the Senate. In contrast, stocks may rally on hopes of more tax cuts if Republicans retain control of the House.

However, some respected economic gurus do have predictions of how the market will react.

Billionaire Thomas Peterffy predicts that the stock market will plunge up to 15 percent should Democrats take the House and Senate in the midterm elections.

The founder and chairman of Interactive Brokers, one of the nation’s leading digital brokers, says the market will surge back to record highs if Republicans retain control and ward off a Blue Wave on Tuesday.

“If the Republicans win, the market is not going go down. The market is going to go up,” he told Newsmax TV in an exclusive interview.

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