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Markets Showed Blue Sweep Bias Into Vote Count As Trump Predicted ‘Victory’
Markets generally retained what felt like a "blue sweep" bias across the Election Day cash session stateside, as equities surged and bonds fell with just hours to go before the first results began to trickle in.
At one juncture, US stocks were higher by nearly 2.5%. Financials and industrials paced gains, possibly indicative of expectations for a more pro-cyclical post-election environment. Oil rose, but that's mostly an idiosyncratic story for now -- OPEC+ looks poised to delay a planned Janua
My prediction is that the we’ll have clarity on the winner fairly quickly with one or two of the major sunbelt swing states showing a clear Biden lead which will lead to the melt up dynamics you discussed in one of your other articles. After running hot due to unwinding of leverage, we’ll see a drawdown through the end of the year whether it’s because dems have taken the senate and will increase corporate and/or capital gains taxes next year or because a republican senate will squash any further stimulus causing further deterioration in the economy.