We have a multi trillion-dollar capital market here in the US, and we are in the middle of earnings season, but in the next few days we also have one of the most watched mid-term elections we have seen in years.
Often capital market participants place their bets ahead of election results, leaving many, including ourselves, to believe they have figured out the results, or have great confidence in their forecast.
Not withstanding today’s move, it would not surprise us for the capital markets to be captive to the election results, which will be here shortly. Being captive to an event usually leads to lower market movements, again today withstanding.
Barring any major surprises we expect the focus to move back towards earnings after the elections, which continue to be better than we expected, SO FAR !
Have A Great Day!