Risk assets continue to plunge
The VIX is up 27% today and threatening the highest close since the US election.
There is a line of thought that says the Georgia special election has been mispriced, especially in terms of volatility. Over the last week, there's been some compelling data showing that Democrats are running close -- if not ahead -- in the race for the two seats.
Early voting has been very strong with Democrats and black voters running ahead of anticipated. That bodes well and polls (if you can trust them) also show a Democrat win.
Now I think that's a huge positive for markets because the Democrats are going to spend. I don't see any chance of a corporate tax hike with that because soft Dems like Joe Manchin will never support it.
At the same time, you can't rule out anything right now and this might simply be hedging around an uncertain outcome.
