Equity futures higher
S&P 500 futures are pointing to a 36 point gain at then open, nearly erasing Friday's 40-point decline.
I think there's a great case for buying risk ahead of the US election because I think the market is underestimating the chance of a blue wave because of what happened four years ago. That said, it's not the kind of situation where you want to bet big. As someone said in the WSJ today "This is the closest 10-point lead in history."
The trick now is to find assets that will do well in a variety of scenarios. Gun stocks do well in Democratic administrations because of fear of stricter laws and they also do well when there is chaos. Gold would benefit from fears but would also benefit from higher spending in a blue wave.
