Trump Assassination Attempt: Gold, stocks set to decline on Republican sweep speculation

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Fist in the air and on with the fight -- that has been the historic picture that former President Donald Trump shortly after he survived an assassination attempt on his life.

Donald Trump has surviveda shocking assassination attempt over the weekend. The former president's odds of winning increase amid sympathy and his defiance. Markets may react with a risk-off reaction on fears of higher rates as a result of a clean Republican sweep. Trump was injured in his ear but seems to have come out stronger politically from the shocking political violence. The 45th president tends to portray himself as a victim, and at least in this case, he certainly is one.

If the GOP gains control of the White Huse and the two chambers of Congress, it could enact tax cuts which would increase the deficit. That is how it works. When one party has control, it is either tax cuts by Republicans or more spending by Democrats. Both cases lead to a higher deficit, while a split Congress hardly approves anything. In case of a higher deficit, bonds would be sold off on fears of higher supply, and of a re-acceleration of inflation.

 

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