Global markets appear to be looking past the uncertainty that clouds the near-term landscape and focusing instead on the promise of a sunnier future. Two linked factors are driving this optimism: the prospect of US fiscal stimulus and the upcoming elections. Given the decreasing likelihood that Republicans and Democrats can reach a deal this week, the specifics of the stimulus package will likely depend on the next president and Congress.

In this week’s podcast, Ewout van Schaick explains why markets are pinning their hopes on Democrats’ regaining control of Congress as well as the White House, why such a blue wave could lead to fundamental regulatory changes in certain sectors and why investors shouldn’t discount the risk of a disputed election. He also explores the current situation in Europe and what it means for our multi-asset portfolios.