U.S Election - Market Outlook
On the night, more uncertainty will most likely lead to lower equities and a general risk off tone until the result is confirmed.
But what next?
Election-aside, there is a lot of uncertainty on the horizon with the new round of lockdowns and restrictions, so the main focus has to be the near-term outlook.
Initially, the Blue Wave is the most risk-positive scenario.
A clear outcome and a huge fiscal push without those miserly Republicans banging on about trivial matters like the fiscal deficit.
A couple of Blue Wave scenarios:
In our view, a Biden win will be associated