How is Wall Street positioned for the election? Even Wall Street isn’t sure.
For most of October, “buy the stimulus trade” was the main idea on Wall Street. After all, polls showed odds were good for a Biden victory that would likely entail some kind of large-scale stimulus. Investors were buying small-cap stocks, infrastructure plays and alternative energy sectors like solar, wind and other clean energy ETFs.
Then Covid came back with a vengeance. Suddenly, there was concern a renewed outbreak and its impact on earnings would overwhelm any benefits from stimulus.
