Morgan Stanley has a complete breakdown of how to trade the 2020 election

People vote at a voting station for the special election between Democratic state assemblywoman Christy Smith and Republican businessman and ex-Navy pilot Mike Garcia to replace former Democratic Congresswoman Katie Hill in the state's 25th Congressional District, in Santa Clarita, California on May 12, 2020.
Mark Ralston | AFP | Getty Images

Uncertainty around this year's election outcome is unusually high, and that could have implications for the stock market, which has now rallied nearly 50% off its March low.

When uncertainty is high, stocks can become more range bound in the months just before an election, according to Morgan Stanley strategists. The strategists were part of a group of analysts that shared their views on the election's impact on markets, the economy and sectors in a report.

The race is close,  with the potential of a Democratic 'Blue Wave' rising, said the analysts in a wide-ranging note on the Nov. 3 election.  Former Vice President Joseph Biden is leading President Donald Trump in the general election map, but Trump still leads in some battleground states.