When a surprise outcome occurs that has crosswinds in capital markets, large moves by capital market players can be seen more clearly.
Post Election Capital Market Movement
Interest Rates, our proxy is the 10 year treasury…. higher rates on the horizon? Possible signal, more growth and higher interest rates across all terms..
Financials…benefactors of possible regulation loosening and higher rates…
Transportation Index moves higher, signaling possible higher growth
When the big money moves it leaves an interesting trail of their thoughts and future bets. So far their bets are generally for higher growth, higher interest rates and a future economic pickup!
Time will tell if the bets are correct!
Good news…diversified portfolios are benefiting from these moves..
Have a great day!
John A. Kvale CFA, CFP