Thoughts on the Market

Although improving economic growth and rising inflation could present challenges for bond investors, “re-opening” could bring benefit for municipal bonds.

Although COVID-19 new case rates have been climbing in Europe, the impact of this second wave may not be as severe this time around.

Upbeat news on a coronavirus vaccine and a win for President-elect Biden drive stocks significantly higher. How should investors trade a potentially earlier re-opening?

All eyes are on the U.S. Presidential race as markets also weigh climbing coronavirus cases in the U.S., fiscal stimulus uncertainty and October’s jobs report.

Amidst the uncertainty, three topics should be front of mind for investors: implications of a divided government, the path to fiscal stimulus and tax changes.

Although some volatility may lie ahead, the end of the U.S. election cycle and progress on a potential coronavirus vaccine may bring some optimism to markets.

A look at the 2008 and 2016 U.S. elections suggests that a sweep by either Democrats or Republicans could push stocks and bond yields higher in 2021.

For investors, election night could hinge on moments when markets conclude who has won, not necessarily on when media networks call a winner.

U.S. equity markets have been stuck range bound due to three key concerns, but investors could use that uncertainty to their advantage.

In part two of our special election episode, we look at the policies that could potentially come out of divided party control among the White House, Senate and House, and how they might impact markets.