Futures are up more than 600 from last night’s panicked lows. Bonds are getting demolished now, as the specter of QE wanes — leading to a huge move lower in TLT.
As of right now, the spread between the 2 and 10 yr bond yields is 110bps, which is very bullish for banks.
US Steel is higher by 10% and CAT is up nearly $3, due to the specter of a gigantic southern border wall.
Gold stocks are sharply higher and defense contractors, like RTN and LMT are ripping to the upside due to Trump’s pledge to increase military spending.
Expect coal stocks to roar higher too at the open.
Essentially, the great panic of a Trump win has morphed into a sober realignment of interests and investors are reallocating assets in places that should benefit under Trump. Bear in mind, today’s reaction might be a bit cartoonish, as people exaggerate what a Trump win might mean.
All in all, early going, it looks like the market wants to rally. I will have a lot more to say once I see the markets open and bear witness to the capital flows.
The world hasn’t ended.
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What yee be recomendin’ if I be long the TLT Cap’n? Arrrrr.
Just need to adjust to the new playbook.
I am surprised how many people think its the end of the republic and the rise of a totalitarian regime.
I’m with the pirate. Why would there be an expectation of no more QE? Is that a function more of interest rates surmised to possibly rise under Trump or a major sell off US treasuries?