Joanne Bianco, senior investment strategist at BondBloxx, said investors view
the U.S. midterm results as supportive for bonds and equities because the
outcome raises the hurdle for further fiscal expansion and increases the
likelihood of greater checks on policy. She noted that, although few in
Washington now openly advocate fiscal tightening, a more fragmented policy
environment should make further fiscal deficit expansion harder and could
improve the fiscal outlook. In a report she added that markets will refocus on
geopolitical risks and whether the U.S. economy can remain resilient.
