• The US presidential election has been determined, but control of the Senate remains contingent on two January runoff elections in Georgia. Investors should remain mindful that a Democrat-controlled Congress and White House would likely shift the legislative agenda of President-Elect Biden, putting personal and corporate income tax hikes, in addition to an environmentally-focused infrastructure deal, back on the table.
  • Progress on the part of the scientific and medical community on a Covid-19 vaccine has been nothing short of remarkable. While production and distribution challenges remain, an end to the pandemic is now in sight. As a result, markets have seen a sharp rally, including in businesses such as airlines, hotels, banks, and energy.
  • Near-term case increases worldwide remain a significant concern, but investors should remember that the months following the onset of the pandemic in early 2020 have seen better treatments, improved hospital preparedness, and increased awareness about how behavior and sanitization can help to limit outbreaks over time. Despite reasons for caution in the weeks ahead, monetary policy, fiscal policy, and an upturn in market sentiment remain key reasons for optimism about the year ahead.
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