Morgan Stanley Suggests Investors Focus on U.S. Senate Race
- Zezas says Senate race likely key to outlook for fiscal policy
- Democratic sweep pressuring stocks may be buying opportunity
The U.S. Capitol building in Washington, D.C.
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Investors should focus on the Senate race in the U.S. election since that contest is likely key for the fiscal policy outlook, Morgan Stanley said, adding that a Democratic sweep may create a buying opportunity by sparking a temporary drop in stocks.
If Joe Biden wins the presidency, “control of the Senate will mean the difference between substantial fiscal expansion and fiscal gridlock, which would challenge some of our colleagues’ more bullish views on risk assets,” strategists including Michael Zezas and Ariana Salvatore wrote in a note.