Author Archives: Shah Gilani
The up and down sounds you’re hearing out of equity markets reminds me of what it sounds like when racecar drivers, positioned on the starting grid, rev their engines before the checkered flag is waved to start the race.
Investors know there’s a big spending race about to start with the Biden administration poised to unleash a torrent of cash on households, unemployment support, health initiatives, states and cities, and eventually on infrastructure and a Green New Deal. As such, they’re positioning themselves.
In hindsight, the market’s extraordinary rally on the heels of Donald Trump’s election was mostly unexpected, until investors realized they had to get on board or miss the bus. And they did – get on board, that is. And they kept coming and markets kept rising.
This time around, investors are expecting markets to climb on the heels of a Democrat-led Congress and Executive Branch. And markets are already rising.
The question a lot of analysts and investors are asking themselves is, will a Democrat-led economy crush the push markets got under a Republican presidency?
My bet is they will.