Democrats taking both the House and Senate in the midterms is mostly bullish for stocks but complicates Trump's final two years, with mixed effects on your wallet.

• Stocks have historically risen in the 12 months after every midterm election since 1950, so history favors a strong run ahead.
• Trump's promised $5,000 "dividend" check was tied to Republicans keeping Congress — since they lost it, that payment is off the table.
• A third impeachment of Trump is likely in the House, but conviction in the Senate requires a two-thirds vote the Democrats don't have, so removal from office is very unlikely.
• Democrats can't force an immediate end to the Iran war, but they can squeeze funding for it, which over time could ease the higher gas prices, inflation, and interest rates the war has caused.
• Don't expect the cost of living to improve — gridlock between a Democratic Congress and a Republican president just slows down how fast things get worse, rather than reversing it.

Outlook: Expect a divided, gridlocked Washington — good news for market stability, no new stimulus checks, a drawn-out funding fight over the Iran war, and a slower (but still rising) cost of living.