We're at the mid-way point folks...
Well, the half-way point has arrived. The Mid-Term elections in the States are over and markets made a collective "meh" and away they went this morning. As I'm writing this the Dow is up over 300 points and all the others are up with single and double digit increases. Overall, the markets anticipated that a shift in the House would happen (Democrats overtaking the Republicans) and all in all, the markets always like what is expected to happen.
I've ran across a few articles today that I'll link towards the bottom of this blog but for now, the markets, in particular the bond markets are now focused on the Federal Reserve. They are anticipating no move up in rates this week but they do expect another move up before year end. Here in Canada, the Bank of Canada is trying desperately to catch up to the Feds in the US and we too anticipate increases in interest rates over the next year or so.
Back to the mid-terms, it's at this point that we can probably say that the US Presidential campaign has now begun. Biden and Warren appear to be front runners for the Democrats as they stump around the country for their 'cause' but there is a yearning underneath the cloak for a generational shift in their leadership. It will be an interesting two years ahead. The Republicans re-elected two who might be indicted and go to jail. Who knows what we're in for in the next two years? There's no doubt it will make for interesting news.
The trade 'wars' will continue to create some volatility but may be less overall. The global markets will continue to outperform the US market, which is expensive currently and Europe is less expensive. We could ultimately see a small correction in the over-priced market in the next while. Over the next two years, the President will undoubtedly move towards fixing infrastructure and with doing so, comes jobs and economic spin. The catch is having a enough money and in some jurisdictions having enough workers/crews to do the work that needs to be done. The US economy is strong and should continue to be strong for the next while.
Take a look at a few articles I ran across and also don't hesitate to click on this link to subscribe to a morning business newsletter that will give you updates from around the world and keep you in the loop.
Market Snacks or Morning Brew, you can choose.
Have a great Wednesday everyone. Let's park October in the past and move on...
From the Financial Post...
From the Globe and Mail...