After much legal wrangling and cheap shots from incumbent president Donald Trump, it appears we are nearing the end game regarding the election. Whilst Trump has not accepted the result, we are starting to see signs of a transition of power to the Democrat leader Joe Biden.

One of Biden’s first appointments, as treasury secretary is rumoured to be Janet Yellen, former chairman of the Federal Reserve. Yellen is perceived as a safe pair of hands and won plaudits during her time at the Federal Reserve, steering the US economy after the financial crisis of 2007. Yellen has been outspoken on climate change and the inequalities within the US economy.

We would expect the new Democratic leadership to be much more user friendly, but their ability to make significant changes to policy will depend on whether they  gain a majority in the Senate, which at the time of writing seems unlikely. Certainty around the election, coupled with a government limited by a minority in the Senate, is viewed favourably by pundits with regards to the US equity markets.