With the 2020 U.S. election on our doorstep, sector strategist Denise Chisholm and Fidelity’s political expert Jim Febeo discuss possible election night scenarios and what they might mean for markets and policy. Jim notes that in the last election, Donald Trump edged out Hillary Clinton by a narrow margin, and relied on key victories in states such as Michigan. Markets are discounting mechanisms, and investors should understand the market will price in the election outcome. The Republican party is taking a conservative stance on adding additional stimulus, given the effects lingering from previous implementations. Denise doesn’t believe the stimulus “bridge” needs to be as long as some may think it should be. Jim notes that the Senate is the key player in determining the stimulus, and a Republican majority in the Senate would likely continue to take a conservative approach, while a Democratic “blue wave” will probably bring greater stimulus and fiscal spending on infrastructure.

Recorded on October 27, 2020.