November 8, 2020
Weekly Market Outlook
By Keith Schneider
Yesterday, November 7, the contentious U.S. Presidential election concluded with Joe Biden declared the victor by the Associated Press. Trump’s legal team is pressing on to disallow many mail in ballots across key battleground states to keep the presidency, but the odds makers in England say that Biden will assume the job and Trump's legal efforts will ultimately fail.
However, the expectation of a change in U.S. leadership along with the prospects of no change in the Senate and ultimately a stable, “not much change,” government fueled the market higher and “lifted all boats”.
With the dollar under pressure, it appears that the global reflation trade is on and all asset prices (especially housing) are the beneficiaries of this NEW DIRECTION under a changing and evolving government.
The highlights of this week’s market action are the following:
Markets loved the fact that the election came to a close with no violence or social unrest.
Assuming that a peaceful transition occurs with electoral votes being certified on December 8, western democracy will have survived.
However, considering that this week the dollar tanked, long bonds sank and look heavy and with precious metals, cryptos roaring it is hard to call what is next for the markets.