- I wrote previously that risk sentiment was very likely to improve dramatically after the election.
- Biden is not as "market-unfriendly" as many make him out to be. The rally in equities when he was leading Trump was clear to see.
- Now that weekend reports have largely confirmed his presidency, market focus will return to liquidity.
- Global central banks are expanding their balance sheet size at rapid pace, and we should expect a stimulus package from the European Central Bank by year-end.
- Risk here is for Trump to refuse to cede power, which will delay the passing of any stimulus bill in Congress.
For further details see:
Animal Spirits Come Roaring Back Post-Election