Investors are getting more focused on November 3rd and its outcome. To be fair, the US election is more than two months away and things could change depending on COVID-19 trends, pace of economic re-opening, debates around policy and geopolitical developments.
The US economy and employment may continue to improve slowly. Looking further out, Citi analysts are increasingly optimistic on the state of business cycle and growth prospects for 2021 and 2022.
With just 4% of the world population, new cases in the US are near 30% globally. A more sustained US fiscal response may be necessary and investors are also starting to focus on the US Presidential elections in November.
In the months ahead, occasional bouts of uncertainty and market volatility can be expected, with a potential re-emergence of COVID-19 cases, US-China relations and US elections among the top risks.
