If youre sitting at your table eyes sagging and mind racing youre one of many.
The united states election, as you might be aware, ended up being yesterday and with the vote today appearing like -- after quite a strange night, admittedly -- it's going to signal a biden presidency hamstrung by a recalcitrant republic senate, it seems markets are determined to come back to a familiar narrative.
You may recall we outlined the biden blue brush reflation trade idea last week, and here it's once again just in case you missed it:
Well that narrative seems to be dead into the water, judging by markets these days. treasuries tend to be rallying, and anything that could be characterised as high length is after like the most durationy of duration possessions: technology equities. at pixel, the nasdaq index is up 3.5 per cent - with many brands including alphabet, amazon and twitter all up over 6 percent.
Just like it previously was then actually.
On the reverse side, price stocks are becoming smashed. the russell 2000 value etf (ticker: iwn) is down 1.88 percent. worth people cant really capture some slack can they? (h/t to jake on twitter for pointing this down.)
So truly, its simply more of the same. financial policy will be hamstrung, this means grandmaster jay is once again de facto responsible for the economy.
But similar to narratives of history twenty four hours, are not certain the length of time this 1 will hold often.