FXStreet reports that given the event risk around the US election, near-term uncertainty is high but economists at UBS think the setback to risk assets is likely to be relatively short-lived.

“Regardless of who wins the presidency, we expect another sizable fiscal stimulus bill to pass soon after the election. Both monetary and fiscal policy should remain accommodative. And with ten vaccine candidates in late-stage trials globally, our central scenario is that restrictions can start to be lifted by 2Q21, helping corporate earnings recover to pre-pandemic levels by around the end of 2021.”

“We continue to see upside over the medium-term, and target 3,700 on the S&P 500 by June 2021, around 13.2% higher than the current level.”