Markets have been wagering that the 2020 election would result in a so-called “blue wave,“ but that scenario seems far from likely, as the race has shaped up to be a nail biter of a contest between former Vice President Joe Biden and incumbent President Donald Trump.
Goldman Sachs’ Lotfi Karoui wrote in note last month that expectations for a rollback of Trump’s 2017 Tax Cuts and Jobs Act, under a blue wave scenario, would be somewhat mitigated by “expansionary fiscal policy“ and “the subsequent material boost to growth over the coming years would more than offset the negative impact from higher taxes.
“The final outcome of the U.S. presidential election and control of the Senate remain in the balance, but the widely-anticipated ‘Blue Wave’ appears to have floundered, with betting markets now making Donald Trump the favorite to win a second term,“ wrote Paul Ashworth, chief U.S. economist at Oxford Economics in a Wednesday note.
No problem for the french market cac40. We have been in green this morning for few minutes. No economy no social activities but incredible strong market 😂😂😂
good luck