The best ‘blue wave’ trade could be this muni bond ETF and bitcoin, strategist says

A man walks a dog in the shade away from the midday sun past the New York Stock Exchange (NYSE) building in Manhattan, during hot weather in New York City, New York, U.S., August 11, 2020.
Mike Segar | Reuters

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Investors should consider preparing for the possibility of a Democratic sweep on Tuesday by taking stakes in two asset classes outside of stocks, said Michael Darda, the chief economist and market strategist at MKM Partners.

Democratic nominee Joe Biden enters the final day before the election with a healthy lead in national polls, and his party is favored by betting markets and several election models to win the Senate and House. Darda said in a note to clients Sunday that the scenario could boost options that benefit from Democratic proposals for higher taxes and more aid to state and local governments.