Panos Mourdoukoutas, Ph.D. author at International Business Times, reached out to Vineyard Global Advisors Investment Analyst and Senior Trader, Sam Caylor for his perspective on the rise of US stocks over the last several days in anticipation of mid-term election results.
While the full results of the midterm elections may not be known for days or even weeks, traders and investors raised their bets on stocks on the prospect of a divided legislature, with Republicans taking control of the House and Democrats holding on to the Senate.
This Article Explores...
Why a Divided Legislature is Good for Equities and Debt Markets.
An even split in the houses of congress makes it more difficult for Washington to reach consensus on regulations that can negatively impact business and help constrain spending, which is good for debt markets.
How Thursday's Consumer Price Index Results Could Spell Lower Equity Yields.
Lower inflation could help drive lower bond yields, good news for interest rate-sensitive sectors like consumer discretionaries and utilities. Lower yields will also help drive the U.S. dollar lower, providing a tailwind to listed companies with significant overseas exposure, like the high techs.
Author: Panos Mourdoukoutas Ph.D., International Business Times
Guest Contributor: Sam Caylor, Vineyard Global Advisors Investment Analyst and Senior Trader
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