The increased probability of an approved vaccine by the end of November is underpriced by equity markets, wrote strategists including Kamakshya Trivedi in a note Wednesday. Over the next few months, the ramifications of the U.S. election and the evolution of the virus — in part as schools reopen — are also likely to be key drivers of the market, they said.

Approval of a vaccine could “challenge market assumptions both about cyclicality and about eternally negative real rates,” the team wrote, adding such a scenario may support steeper yield curves, traditional cyclicals and banks, while challenging the leadership of technology stocks. If this happened along with a change in the U.S. administration, emerging market equities could benefit “if trade policy risks diminish while U.S. tax risks rise,” according to the note.

  They see a potential downside target of 2,200 in the S&P500 should there be a significant reversal of activity from a second wave of the virus, the strategists added. The U.S. benchmark closed just under 3,328 on Wednesday. Nick Note: I want to be crystal clear here. For weeks i have told you i was waiting for the breakout over 3300. I got it it yesterday. I was amazed at how many people got nervous. To be clear i want to AGGRESSIVELY add positions here and now. To be even more precise. I AM HOPING THEY BALLYHOO A SUCCESSFUL VACCINE. Many people are confused you are thinking oh my GOD the market will zoom even further and wipe me out. I adamantly disagree. Its buy the rumor sell the fact! I will explain in greater detail in