“I am very optimistic.” David Metzner, managing partner at ACG Analytics, believes that a divided government with Joe Biden as President of the United States and Mitch McConnell as Senate Majority Leader will work out to the country’s benefit. Metzner believes that those gentlemen, as well as Senate appropriations committee chair Richard Shelby (R-Alabama) operate via negotiation – a skill he feels is lacking among newer and more partisan members of congress. 

Effect on the economy – Metzner expects the Biden administration to be a one-term presidency. As a result of that, he also expects that there will be a return to the White House acting as an interagency hub that will govern quickly.  He expects a centrist approach to policy, something he feels that McConnell will be amenable to. 

Some policies he anticipates will include a modest stimulus package in the range of $500-800 million for COVID relief and an infrastructure bill that is largely paid for in advance. 

Revenue raising bills will be on the table to tackle the deficit, but they will be hard to accomplish so long as the Republicans continue to be anti-tax, Metzner stated. 

Trades and Investments: The infrastructure bill that Metzner explains in detail could be funded by supplementing local governments and municipal bonds. These end up being very attractive investments for retirees and foreign investors. This will be an area to keep an eye on should infrastructure take center stage on the policy floor.