According to Goldman Sachs Prime Brokerage analysis, S&P 500 rallied in the long term which is an expectation during elections. Regularly, the index struggled during the election mostly due to volatility. The volatility index was higher during the last election process in 2020.
When looking at leverage levels hedge funds increased them in this election year, in comparison to the last three election cycles. Currently they are at ~20%, while in the past three cycles they didn’t go above ~15%.