Markets Brace for Greater Chance of Blue Wave in Georgia
- Democratic Senate would increase inflation risks: Samana
- TLT put spreads in high demand as breakeven rates climb
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While the relentless spread of the coronavirus drove the equity market lower on Monday, there were also signs investors are preparing for a greater possibility that Democrats will gain control of the U.S. Senate.
A Goldman Sachs basket tracking stocks that should benefit from Democratic Party policies performed better than those expected to be harmed. And even as the S&P 500 dropped, the Invesco Solar ETF -- thought to benefit from President-elect Joe Biden’s energy policy -- rose more than 2%. Bond-market inflation expectations climbed to the highest since 2018, and options traders piled into protection against rising yields.