How the outcome of Georgia’s Senate runoff races will impact the markets

Weatherford Capital Managing Partner & Fmr. Speaker of the Florida House Will Weatherford joins Yahoo Finance live to discuss the latest market action and what to expect from the Georgia Senate runoff race.

ZACK GUZMAN: I want to shift over to the market implications at hand here around these runoff races here and what could spark what we saw yesterday, some volatility here, depending on how these races shake out. Joining us now for more on that is Will Weatherford, Weatherford Capital managing partner and former speaker of the Florida House. And Mr. Weatherford, good to be chatting with you again here.

We've had a few views out there. We talked about Oppenheimer saying we could be due for a 6% to 10% correction if Democrats were to win these races. You have Goldman saying it's going to be a big boost to the idea of stimulus here. So how do you see it shaking out, what the markets bracing for around these races?

WILL WEATHERFORD: Well, first, I mean, we find ourselves in really unique circumstances. I mean, two weeks ago, the market had absolutely baked in Republican victories in Georgia. And we're kind of coasting to the end of the year. And we find ourselves now here in early January as we get closer to the election, on Election Day.

And there's a lot of uncertainty. Candidly, a lot of that is self-inflicted by the president and some of the things he's done over the last 30 days. But the market is gyrating because it doesn't really know what's going to happen tonight. And we probably won't know until tomorrow morning.

But I think big picture, you have to think that the short term, if the Democrats are somehow able to pull off both of these races, which is possible, you have to think there's a short-term boost to the market. And I think that's just because everybody is going to expect a very robust stimulus 3.0. You can probably count on that.

Conversely, if the Republicans are able to hold on to just one seat, perhaps even both of them, then you could find yourself in a situation where you kind of guarantee no tax increases are going to happen. You guarantee no more regulations are probably going to come through in a meaningful way. And so that stability plays out in the market over the long haul.

So it's going to be really interesting to see. I don't think anybody who tells you who knows-- that they think they know exactly what's going to happen tonight isn't telling the truth. But it's going to be close. And the market will have some interesting responses in the next 24 hours

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