In a newly divided Congress, it’s unlikely that tax increases or other major regulatory proposals will become law, McGregor says, but there’s also a risk that legislation that needs to pass early in the year to keep the government open may have trouble getting through. 'That could add to market volatility in the near term,' she says. 'But I do think there could be bipartisan cooperation about Ukraine and China policy, for example — and both of those could lead to higher defense spending.' Another key area for investors to consider is cybersecurity, she adds. And as existing bills like the Inflation Reduction Act and 2021’s Infrastructure Investment and Jobs Act continue their roll out, investment opportunities in green energy and infrastructure-related companies could emerge.