The Presidential election has been won by Biden and the Senate will be either a 50/50 tie or a slight Republican majority pending the special election in Georgia for both seats. Regardless of the Senate outcome, the big shift to the left on policies and tax increases will be muted. Going into election day the consensus was for a Biden victory and a slight Democratic majority in congress. Most Wall-Street strategists saw the potential for major stimulus with a “Blue Wave” that would likely lead to higher equity prices, higher bond yields, and higher inflation. A split Government would likely see less stimulus, but also less regulation.

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