AGF Management Limited

05/24/2024 | News release | Distributed by Public on 05/24/2024 04:13

The One Easy Election Call

THE RACE FOR PRESIDENT is very close, and the House could go either way. But there's one easy call - the Senate, now narrowly controlled by Democrats, is very likely to flip to the GOP. We give this a 70% chance of happening.

INCREDIBLY, THERE ARE NO SERIOUSLY VULNERABLE Republican seats; perhaps Ted Cruz in Texas or Rick Scott in Florida may have to break into a sweat, but they're clear favorites. All the other GOP seats are solid, so with the Democrats now clinging to a 51-49 majority, the bar is low for a Senate flip.

THE ACTION WILL BE CONFINED TO VULNERABLE DEMOCRATIC SEATS: Several look shaky, as follows: The West Virginia seat being vacated by Joe Manchin almost certainly will fall to GOP Gov. Jim Justice; Democratic Sen. Jon Tester is a slight underdog in Montana; Democrat Sherrod Brown trails in Ohio; and Jacky Rosen is in trouble in Nevada. The latter three are excellent campaigners, but Donald Trump is the favorite in all three states, providing some coat-tails.

REPUBLICANS HAVE OTHER PICKUP OPPORTUNITIES: The Arizona seat being vacated by Kyrsten Sinema is very close, with former Gov. Kari Lake in a tossup; Sen. Bob Casey is in a tough fight in Pennsylvania; there's an open Democratic seat in Michigan, and Democrat Tammy Baldwin is barely ahead in Wisconsin.

WHAT'S CHANGED IS THE LAST-MINUTE ENTRY by Larry Hogan in Maryland, who is seeking the seat being vacated by Democrat Ben Cardin. Hogan is a moderate Republican who's a media favorite and a popular ex-governor who is aggressively running away from Trump.

BASED ON THESE RACES, WE THINK THE REPUBLICANS will gain at least two or three seats while losing none of theirs - enough for them to take the Senate. So it's no wonder that there's an intense battle to become Senate Majority Leader, replacing Chuck Schumer, the New York liberal. (Sen. Mitch McConnell, 82, will not run again for a leadership role, and South Dakota Sen. John Thune is the early favorite to succeed him as Majority Leader.)

THE KEY FACTOR: Will this be a "wave" election or a cliffhanger? If Trump wins easily, the GOP could pick up a net of perhaps four or five Senate seats; if it's a nail-biter, perhaps the GOP may pick up only two or three. But the bottom line appears clear: the issue isn't whether the Republicans will capture the Senate, it's by how much.

The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

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