Jason Zweig of WSJ offers some good advice for financial
market investors –
Afraid of What
Comes Next for the Markets and Economy? Read This
“A time of
political shock isn’t a time for investing action. Instead, it is a time to
watch and wait. The worst possible moment to make clear and durable decisions
is when you are surprised by what just happened….
In investing, what
always matters is not what happens but how it differs from what people were
expecting to happen. The best way to make the gods of financial history laugh
is to say that anything is “clearly” going to happen.
President Obama
“clearly” was going to impose health-care regulations, and so he did — but
health-care stocks ended up resoundingly outperforming the rest of the stock
market while he was in office.
President George W. Bush was “clearly” going to increase military spending, and so he did — but, according to FactSet, defense stocks lost 19% in 2001 and nearly 7% in 2002.”
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Stock Market vs. Bond Market - Divergence Ahead?
Interest rate expectations and inflation expectations have changed rather dramatically over the past two days:
http://www.bloomberg.com/news/articles/2016-11-09/pimco-joins-bond-traders-seeing-fast-tracked-fed-after-trump-win
President George W. Bush was “clearly” going to increase military spending, and so he did — but, according to FactSet, defense stocks lost 19% in 2001 and nearly 7% in 2002.”
---
Stock Market vs. Bond Market - Divergence Ahead?
Interest rate expectations and inflation expectations have changed rather dramatically over the past two days:
http://www.bloomberg.com/news/articles/2016-11-09/pimco-joins-bond-traders-seeing-fast-tracked-fed-after-trump-win