When the Economy collides with the US political situation
The Democrats have effectively won the house of Representatives. They have also won the White House and have split the Senate with the Republicans. The changes in policies and leadership will inevitably affect the macroeconomic environment. This will in turn affect the performance of the investments we have. Hence, I will be going through how some macroeconomic factors will perform in the next year or so.
However, before we dive right in, we must explore what macroeconomics is. Macroeconomics tracks the behaviour of the overall economy. It does not only study economic growth, rather it branches and tracks other factors like interest rates environment, liquidity, credit environment and inflation[1]. Proceeding, we will need to explore how the different macroeconomic factors will be affected in the next year.
