October proved to be the worst month in the financial markets since the emergence of COVID-19 last March, but Federal Hermes analyst Steve Chiavarone sees the proverbial light at the end of the tunnel. He points to an economy that’s in recovery, exiting recession and to improved corporate earnings.

The only caveat at this point, Chiavarone says, is the COVID-19 pandemic. “The only thing that threatens that is if the virus were to get bad enough that we were to have a nationwide lockdown, which I don’t think is in the cards.” Appearing on CNBC, Chiavarone elaborates on the market’s future prospects and discusses how the outcome of the election may play a crucial role in the recovery.