Despite the rising Coronavirus numbers and new restrictions being introduced in Europe, the stock market rally continues.
Investors have not lost faith that further stimulus measures will follow, and that an effective COVID-19 vaccine will soon be placed on the market, bringing the pandemic somewhat more under control.
Additionally, in the current market environment, market participants hungry for yield have almost nowhere else to go than to the stock market.
Nevertheless, investors are walking on thin ice. Further lockdowns would jeopardise the already fragile economic recovery and have lasting, negative effects on consumer confidence.
On Wall Street, an increasing number of market participants seem to expect that Joe Biden will win the US election.
Who actually wins the election is less relevant in the short-term. What matters more is that there is no contested election and that Republicans and Democrats will agree on a new stimulus package shortly after November 3rd.