Wall Street feels optimistic about Biden

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Widening Joe Biden’s lead in the polls provides an optimistic signal to investment strategists: Wall Street now sees less chance of a contested election and more chance of a ‘blue wave’ – Democrats taking the House, the Senate and the White House – and the hearty stimulus that could follow.Why is this important: A clear Democratic victory “would bring certainty to markets that have been nervous about electoral risks,” Bloomberg reports, citing Citigroup strategists to JPMorgan Chase.

  • Shares of alternative energy companies, which analysts expect to derive from policies under a Biden administration, rose sharply after the Trump-Biden debate, according to Reuters.

Business coverage of Thursday’s NY Times had the headline “Wall Street Takes a Turn for Biden,” with the online version: “Wait, Wall Street is Pro-Biden Now?” “

  • « [I]Investors believe that a victory in the “blue wave”… represents the best chance of securing another large infusion of federal funds in an economy that continues to struggle. ”

But keep an eye on the ball! Goldman Sachs Portfolio Strategy Research told clients on Friday night in the US Weekly Kickstart: “A vaccine is more important than the election which is more important than the 3rd quarter results. “

  • “Investors are focusing on the implications of a ‘blue wave’ election… However, the vaccine is more important than the outcome of the election for the stock trajectory. Our assessment of vaccines and treatments remains optimistic. “

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