Biden and business are midterm election pair trade

U.S. President Joe Biden speaks at the Medals of Honor ceremony in Washington, U.S., December 16, 2021. REUTERS/Evelyn Hockstein

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WASHINGTON, Dec 20 (Reuters Breakingviews) – If President Joe Biden’s stock falls in 2022, that of America’s corporate bosses is likely to rise. Midterm elections in November are likely to punish the governing Democratic Party, and will probably hand rival Republicans at least one chamber of Congress. With Washington in gridlock, companies will get a reprieve from the commander-in-chief’s more aggressive ideas.

Biden handed company executives a good year in 2021. He pushed a $2 trillion stimulus package in March, which boosted consumer demand and corporate profits. The S&P 500 Index gained around 40% between Biden’s inauguration in January and early December. America’s richest 1% slightly increased its share of national wealth in 2021, according to the…

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