Three weeks before the U.S elections, the political fight in Washington is raging, whether in the appointment of the new Judge to the Supreme Court, who should tip the balance for Republican ideals, in the race for the White House and of course, in the discussion about the new economic stimulus package. At this stage anything goes, or almost everything, even if Trump sends messages to his supporters in Congress, as was the case of Tuesday’s tweet where he demanded, “STIMULUS! Go big or go home !!!”, certainly referring to the fact that Republicans do not want to approve a higher aid package, taking into account that the one presented by the White House was $1.8 trillion, above the $1.6 trillion that has been the highest value suggested by the blue side so far, while that the Democrats are worth $2.2 trillion, but neither side seems to want to give in at this stage, in fact it seems that both think that an agreement now would benefit the opposite side in the elections, which in reality is not far from the truth, considering that a successful negotiation can be sold to the electorate as a victory for either side, which for now does not please anyone, but especially the Republicans, who are behind in the polls.
But if the rhetoric game is a habitual strategy for political actors, investors have little regard for it, and the feeling is already in the stage of deep disbelief about the possibility of a fiscal package that will sustain the economy for a period to be expected very complex, with the resurgence of cases of COVID, but also the delay in making one or more vaccines available that manage to put a brake on the contagion. That is, for now the confidence in pushing the market is very low, but likewise there is no pressure for a significant correction, so until the elections and safeguarding some major surprise, the mood on Wall Street may be one of lateral consolidation, perhaps with a slight upward trend, but without much conviction, and it remains to be seen whether this year there will be room for a Santa Rally, or whether 2020 will also be a different year in that regard.
