- As expected, a republican sweep is leading to strong outperformance in risk markets. The S&P 500 rose 2.49%, the QQQ rose 2.72%, and the IWM rose an astounding 5.79% the day after the election.
- The Fed followed the election with a 25 basis-point cut and is currently slated to cut again in December. It’s more likely this cut gets priced out over the coming month, however I expect a negligible impact on risk markets.
- Inflation data this week will help shed light on whether the Fed is still making progress on their 2% goal. Many market participants are sounding the alarm over returning inflation, however I do not see this in the data.
- I anticipate continued new all-time highs out of broad equities, gold, and digital assets. I would like to see interest rates and the dollar fail to make new local highs to strengthen this call.
