Guggenheim's Minerd says the market is betting on a Joe Biden victory, and a Democratic sweep will be best for stocks in the short run

• Scott Minerd spoke on a panel at the Milken Institute 2020 Global Conference on Monday and said that the markets are betting on a Joe Biden win.
• The Guggenheim chief investment officer explained that stocks that would flourish under a Biden win, like those in alternative energy, are flourishing right now.
• He added that a Democratic sweep would most likely be the best for the stock market in the short run and not the "disaster" that many are forecasting.

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Guggenheim's Scott Minerd said on Monday that the market is betting on Democratic presidential nominee Joe Biden to win the election.

During a panel at the Milken Institute 2020 Global Conference, the chief investment officer said stocks that would flourish under a Biden administration are performing much better right now than stocks that would boom under Trump.

Minerd cited alternative energy companies as an example of stocks that are gearing up for a Biden win. The Invesco Cleantech ETF is trading at a record high, and the First Trust Nasdaq Clean Edge Green Energy Index Fund is up almost 100% year-to-date. The iShares Global Clean Energy ETF is trading at its highest level since 2010, and the Invesco Solar ETF is at its highest point since 2011.

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Minerd also said that the resolution of the election "will be positive for markets," and reduce the risk premium of who the next president is going to be.

He added that a Democratic sweep would most likely be the best for the stock market in the short run because there will be "lots of stimulus."

"I don't see it in the near-term being the disaster that a lot of people are proffering in terms of having a Democratic administration," the investment chief said.