The rise in the US equity market over the last six months has coincided with Joe Biden’s advance in the polls, as he is perceived by markets as the most likely to be able to push through a new stimulus package for the US economy. But is this stimulus really necessary to remain positive on equities? If we look back at the 2008-2009 period, the current global stimulus (monetary and fiscal) seems sufficient, and its combination with the expected contraction in savings should provide strong support for improved corporate earnings. This should be enough to drive equities in the midterm.
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