XLF - Mayo sees some certainty for banks amid election 2020 uncertainty

Amid the uncertainty of the presidential election, financial stocks are slipping in premarket trading, after rallying in the the past four sessions.The Financial Select Sector SPDR ETF (XLF) falls 0.4% in premarket.Wells Fargo Securities analysts led by Mike Mayo advise to buy the dip.Short term, the bad news is: The 10-year Treasury yield fell 9 basis points overnight to 0.81%, the presidential election is undecided, stimulus spending might be less than otherwise since it looks like the Senate didn't flip, and "any stimulus might come later while the presidential election gets sorted out."However, there's good news in the medium term in that the Senate not flipping to a Democratic majority will reduce pressure on banks from higher taxes, regulation, and "other tail risk scenarios."Further, they see more stimulus spending coming at some point, which could push the 10-year yield higher by an estimated 50 basis points over the next year."What’s underappreciated, in

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Mayo sees some certainty for banks amid election 2020 uncertainty