How the Midterm Election Results Could Impact Merchant Cash Advances

November 18, 2022

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Following the vote on November 7th, CNBC reported that the midterm election outcome is “typically good for markets”.

Overall, it looks like the status quo is likely to remain intact.

The midterm results mean that the US still has a fairly balanced government, which is an environment that has been historically conducive to stable markets. This is good news for MCAs.

A UBS spokesperson confirmed this analysis by stating that despite the fact that the US may have to wait until December to understand who controls the chambers of congress, there will be a divided government regardless of the outcome.

A divided government raises the likelihood of gridlock and decreases the ability to pass legislation. Reducing policy and regulatory risk is generally beneficial to markets.

Avoiding making investments based on personal political beliefs is the overarching sentiment.

stickers reading ‘I voted’ Midterm Election
A solid investment strategy beats trying to predict the market. Photo by Element5 Digital on Unsplash

Try as they might, investors may be disappointed if they try to predict what one party or another’s control could entail for the economy.

No matter who is in charge, the best strategy for maximizing growth is a diverse portfolio that covers a wide range of geographies, industries, and asset classes.

Merchant cash advances are a unique type of alternative asset which offers low correlation and the ability for huge diversification. Speak to a member of our team about how you can benefit.

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