Reported 12 months ago
Citi Research's head of quantitative macro strategy, Alex Saunders, discussed the importance of government makeup, noting that a split Congress is more bond market-friendly. He highlighted an ongoing tension between fiscal concerns, cyclical factors, and a dovish Fed, likely to impact market performance. Saunders emphasized that as the election approaches, the Fed and election dynamics will be key drivers, particularly if polling indicates a potential split in Congress. Historical patterns suggest a strong equity performance in an election year, but a risk premium may emerge closer to the elections. Saunders highlighted the significance of data dependence leading up to Election Day and potential market reactions based on election outcomes.
Source: YAHOO