Analyst: Markets should remain cautious amid uncertainty in the US election
On November 4, Morgan Stanley analyst Michael D Zezas said that the main goal of investors during the US election should be to build situational awareness and avoid overconfidence in the election results and market impact. Investors may benefit from adjusting expectations.
He said that the forecast market's implied probability of a Republican victory has risen, leading some to expect that the election will produce a clear result on election night. Morgan Stanley believes this is possible, but not the most likely scenario.
Neither candidate seems to be a clear favorite to win the Electoral College, so the long vote count in 2020 may reappear. Given the poor performance of early voting data in the past, Morgan Stanley does not attach much importance to the data and advises not to over-interpret the short-term market trend. The firm said short-term market reactions to elections tend to be noisy and may not be indicative of medium-term trends.$SOL $BNB $ETH
