The final two months leading up to the 2020 U.S. presidential election have produced tremendous short term volatility in the markets, almost reaching correction territory of a 10% decline the month of September alone. Since the final days of October and the post-election days of November, we have seen an 8% run-up in the S&P 500 Index alone. Part of this may be attributable to the pre-certified election results proclaiming former Vice-President Joseph R. Biden (D) the winner and a presumption of a not so hostile business environment under his administration. Some of it may be attributable to the Republican Party gaining seats in the U.S. House of Representatives while ostensibly retaining control of the U.S. Senate, thus keeping some political party checks and balances between the legislative and executive branches. The most likely attribution may the positive news of a viable COVID-19 vaccine candidate from drug maker Pfizer. However, with grave concerns voiced by public health officials regarding a second wave of the pandemic, where do markets go from here?
