Post by account_disabled on Feb 20, 2024 0:34:22 GMT -5
For Republicans, a battle to lower taxes and regulation of the industry. Still, the presidential election remains very close and the possibility of a divided government means investors should focus on macroeconomic data , Ricchiuto maintains. Economic growth, corporate earnings, inflation expectations and Federal Reserve (Fed) policy will drive the markets, he adds. Mizuho reiterates that his forecast is for the S&P 500 index to be between 3,800 and 4,000 points at the end of 2021 regardless of the outcome of the elections. UBS: "Federal Reserve support will continue to support risk assets" While the headlines on Wednesday focused on the presidential election and the lack of an immediate result, the market was more concerned with the evolution of the coronavirus , explains Mark Haefele, chief investment officer at UBS.
Democrats spend election night eating and trying to avoid the fetal position: they have not achieved a quick victory for Biden, much less the binge they dreamed of Hopes for fiscal stimulus may be dashed due to the Democrats' outcome, but other political support remains in play. "The way the Nasdaq is going up and the Russell going down, as well as the Middle East Phone Number List movement of Treasuries indicates that there is still a lot of faith in the Federal Reserve to continue supporting risk assets ," Haefele told Bloomberg TV . Investors will get an update on Fed policy after Thursday's meeting. The central bank is expected to keep interest rates near zero and asset purchases. If the Fed's support and blocking of fiscal stimulus reminds you of anything, you're right, Haefele says.
Elections never tend to matter that much in and of themselves , and the path of the economic recovery from the pandemic will matter more for how markets move in the coming months, he adds. “When you look at the middle of the year, you expect the world to be more digital, more indebted, more local and moving towards sustainable assets — in that sense, things have not moved as much,” Haefele defends. Edison Group: "The probability of a highly disputed result cannot be excluded" Biden is closing in on Trump in key states as mail-in votes are counted. Still, investors should not exclude the possibility of a legal battle over the results , explains Alistair George, chief investment strategist at the Edison Group. "Unfortunately, the likelihood of such an outcome cannot be excluded given the multiple ways in which a close outcome can be brought to court," he adds.