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JPMorgan's top-rated equity strategist Marko Kolanovic believes the election outcomes are shaping up to be "the best of both worlds for stocks," calling for a sustainable rally for the market.
Kolanovic, the bank's head of macro quantitative and derivatives strategy, said a possible Joe Biden presidency with a split Congress could result in a market-friendly environment with lower taxes, status-quo regulations and a better U.S.-China trade relationship. He called this outcome "one of the most favorable scenarios for the market."
"A GOP senate majority should ensure that Trump's pro-business policies stay intact (tax code, deregulation), and if Biden is confirmed we should be able to expect an easing of the trade war (which should boost global trade and corporate earnings growth)," Kolanovic said in a note to clients on Friday.
Kolanovic, the No.1 equity strategist ranked by Institutional Investor magazine, was one of the few on Wall Street that correctly called the market bottom in March and the subsequent rebound to new record highs.