The midterm elections brought major changes to the U.S. political landscape, which could materially affect the business outlook for companies in the stock market.
Markets appear to be experiencing some indigestion as they process new realities.
Stocks fell Tuesday night, surged Wednesday, plummeted Thursday, and then ticked up Friday. I’ll reiterate what I said Wednesday morning:
It’s a reminder to be careful about rushing to conclusions based on a couple of hours of market action. Frankly, we should be careful about drawing long-term conclusions based on even a few days or weeks of market moves.
Historically, the stock market trended higher once the election results became clearer. But the stock market usually rallies, so that market observation offers limited insight into what to expect in the coming months.
Sure, the elections were an uncertainty-clearing event. But that doesn’t mean we have complete clarity on what’s next.
As we await further developments on the policy outlook and everything else, here are some excerpts from the wave of research and commentary that hit TKer’s inbox last week.