Is the “Blue Wave” of US Democrats good or bad for ASX investors?

ASX investors have embraced news that the US Democratic Party now controls both houses, but it isn’t all good news for equities.

You’d be forgiven for thinking otherwise though with the The S&P/ASX 200 Index (Index:^AXJO) surging 1.6% to finish near its intraday peak on Thursday.

The Australian share market isn’t the only one rejoicing at the “Blue Wave”, a term coined to describe how the Democrats control all three layers of government.

US stock benchmarks also jumped last night and the futures market is pointing to further gains when their market opens later this evening.

Blue Wave reflation trade to flood markets

The party will soon install the next president, Joe Biden, while it controls both the Senate and the House….