bonds dollar Markets stocks

No Surrender

US equities stormed higher for a fourth day Thursday, bringing gains on the week to more than 7% on the S&P. Donald Trump's fight to keep control of The White House felt more desperate. The president delivered multiple all-caps tweets demanding the stoppage of vote counts and alleging fraud. As is now customary, a good portion of his tweets were flagged by Twitter as misleading. Trump is suing in multiple locales, so far with not much success. Georgia appears headed for a recount, and, notably, the state could have two runoffs in January for Senate seats. In short, the market continued to project a Biden presidency with a GOP Senate, and that still looked like the most likely outcome. But nothing is certain just yet. The balance of power in the Senate may not be known for months. Still, it's important to note that Democrats underperformed this week, both in Senate and House races. So the market is likely to keep trading the "blue fade" even as a "blue revival" narrative got a bit of traction Thursday. This is shaping up to be the best week for equities since the manic days following the March panic. Big-cap tech is now up more than 9% and could conceivably post its biggest
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6 comments on “No Surrender

  1. runamok says:

    Wow. A year-end melt up. I know there have been forecasts for one. This one could be equities and now bonds. If it happens, it’s going to be spectacular, serving as a kind of collective stress release for market participants. We might actually get to see an occurrence of the vaunted animal spirits.

  2. dayjob says:

    Hopefully, it’s clear today or tomorrow that all but North Carolina will be going to Biden (not saying they will, but hoping). I think one thing the market underestimates is Trump’s willingness to burn it all down if he loses and he may end up having the Republican party in his crosshairs, especially the Senators who blocked his stimulus package. His sons are already asking why the GOP isn’t doing more to defend Trump’s ridiculous claims of fraud. If Trump loses, does he tell his supporters not to vote for the Republican Senate candidates in Georgia? Does he try to form a third party? I wouldn’t put it past him and the hold he has on his cult is strong. I’d still say the Dems’ odds of picking up those two seats are slim, but anything can happen.

    • Jesse says:

      That’s a great point about a third party. Let’s not forget that Trump’s pretty close with Nigel Farage, who has made a career out of creating new parties to capitalise on the same kinds of popular disaffection.

    • I see him more likely starting his own news media. Fox will come to regret the Frankenstein monster they built when he makes them look centrist and mainstream while pulling the bulk of their viewers away.

      • joesailboat says:

        People are creatures of habit they’re not gonna leave Fox in droves. Young Murdoch mentioned at a meeting Tuesday that they welcome competition. No Republican politician is going to go with Trump on his election claims unless Fox goes all in. A Trumpy third party is in the Democrats best interest.

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