Historically elections have been a source of uncertainty for the business community which can slow mergers and acquisitions activity. Now that the midterm elections have passed, what’s next for M&A activity? 2018 has been one of the most active years for dealmaking – with M&A deal value hitting a new high of $3.3 trillion globally. Will this robust activity continue for the remainder of the year?
It seems like Wall Street has regained confidence as tech and healthcare stocks surge. “A lot of what was holding the market back was fear of what might happen, and the fact that it’s over now will eliminate a lot of it,” says Brad McMillan, chief investment officer for Commonwealth Financial in Waltham, Massachusetts. However, with a divided Congress, Trump’s economic plans could face obstacles. M&A activity often correlates with the equities market because both reflect a level of confidence in the economy. When executives feel secure and positive about the economic outlook, they are more likely to execute deals.
While no one has a crystal ball predicting the future, we’ve rounded up a few insights to keep you apprised of various outlooks for M&A and business.
- Tech, Healthcare Stocks Boost Wall Street After Midterm Results
- Politics vs. Innovation: How the Midterms Changed Fintech
- After Midterms, Trump’s Economic Programs Appear Save, But New Tensions Could Cause Market Volatility
- Election Results for Credit Unions
- Divided Congress = Gridlock for Financial Services Policy