As we close out the week, the best development is the recent sustained downturn in cases seen in the US (11 consecutive days cases down vs 7 days ago), and equally true of the current epicenter of FL, CA, AZ and TX (F-CAT). More on this below.

Markets were understandably unnerved by this tweet from President Donald Trump suggesting a "delay of the 2020 elections." For obvious reasons, this defies logic. Indeed, that helped make our webinar yesterday more timely (thank you to clients who tuned in), as our head of Policy Strategy Tom Block offered several useful insights, including a chance for a Democratic sweep and control of White House, Senate and House.

Many might suggest a Democratic sweep is negative for markets, but I can see how it could be positive. Tom Block noted the likely top agenda items post a Democratic sweep are: corporate tax rates hike; modification of healthcare programs, and eased restrictions on immigration. The latter two are market friendly, in my view, because reducing the healthcare burden clearly eases a strain on the American consumer. And many studies show the benefit of immigrants on innovation and capital formation.

However, it might surprise investors that higher corporate taxes often lead to a capital spending rise. It’s rational. If ta...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

More from the author

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Don't Miss Out
First Month Free