Market Snapshot November 6, 2018
Good Morning on This Fantastic Tuesday,
Election day it is and with that, markets are at a bit of a standstill. Stocks are up marginally, bonds about a unchanged but leaking a bit worse. The 10-yr is at 3.21%. The quick read is that if the GOP keeps both the House and the Senate, equities will run higher bonds likely pay the price. If the House goes Democrats and Republicans keep the Senate, a little gridlock likely helps bonds a bit. If both go blue, bonds will improve a bunch. We will know how this shapes out later tonight. Yes, bonds are oversold and have been for some time. Are we due for a correction? Yes we are however, between the elections and tomorrow’s Fed announcement (no rate change expected but we do anticipate some commentary on the future which ls unlikely to be helpful for rates), the smart move would be to lock and float down on any improvement.
Make today great!