A Biden-led blue wave election outcome is already priced into markets, Morgan Stanley CFO says

• A Biden-led blue wave election outcome is priced into markets, according to Morgan Stanley Chief Financial Officer Jonathan Pruzan.
• Pruzan said this expectation rests on the fact that regardless of the election outcome, markets are expecting a large fiscal stimulus package to help improve the economy.
• Even as polls show a Biden victory as likely, some investors are nervous that there will be a contested election result.
• Pruzan said the best election outcome will be a "quick outcome" because markets don't like uncertainty.

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Investors are increasingly expecting a blue-wave election outcome, according to Morgan Stanley Chief Financial Officer Jonathan Pruzan.

He told Bloomberg on Thursday that a Biden-led blue wave is "partially priced into the market," and that's a function of the fact that regardless of the election outcome, the market expects continued fiscal stimulus to help the economy.

"It's not a question of if, but when and how big," the stimulus bill will be, Pruzan said. Congressional leaders and the White House still have not been able to negotiate the next stimulus bill, and it's unlikely a deal will be reached before Election Day.

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Even as polls suggest a Biden win is likely, some investors are still concerned that with a large amount of mail-in ballots this year, a contested election result is not out of the question. Pruzan said the best result of the election will be a "quick outcome" because markets don't like uncertainty.