Georgia runoffs, coronavirus lockdowns put stock market's record run in peril

Best post-election market performance since Reagan: Capitalistpig Hedge Fund manager

Fox News contributor Jonathan Hoenig and former investment banker Carol Roth provide insight into the U.S. stock market numbers after the 2020 elections.

As investors embark on the final month of the year, an uncertain 2020 election outcome and a resurgence in COVID-19 infections have the potential to derail the stock market’s record run, according to Morgan Stanley.

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TickerSecurityLastChangeChange %
SP500S&P 5003621.63-16.72-0.46%

Wilson isn’t the only Wall Street strategist worried that stocks are extended at these levels.

Citigroup’s Tobias Levkovich warned clients in a note published on Friday that the firm’s Panic/Euphoria Model urges “caution.”

While the potential economic impact of rising COVID-19 infections and the absence of government stimulus will at the very least cause an “air pocket of turbulence,” according to Levkovich. Still, he thinks there is an opportunity to make money by playing the rotation into cyclicals, or those companies sensitive to changes in the economy.

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Morgan Stanley's Wilson, meanwhile, has a year-end 2021 S&P 500 target of 3,900, or 7.19% above Friday’s record close. His bear case is for the benchmark index to be at 3,375 while his bull cases call for 4,175.

“Our risk reward range skews positively, with materially greater upside to our bull case than downside to our bear case,” Wilson said.

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