August 11, 2020
Big news came late in the day as Biden selected his running mate: Kamala Harris.
Harris has been the high probability pick, and that should be good news for market stability. And that should be good news for a Trump re-election.
As we discussed yesterday, in my view, Michelle Obama represented the biggest risk to Trump. It had the element of surprise. The media would have gone crazy over it. And it would have opened the door to another Obama White House, in the case of a Biden resignation. That could have been enough to get the Democrats over the line.
It didn’t happen. And for markets that like certainty, in a world of total uncertainty, this pick should be keep markets focused on the big themes: the progression on the health crisis front, the massive global stimulus (and a bulldog President that will continue force things through to keep the bridge intact) and building momentum toward a showdown with China, which includes moving the global supply chain to “freedom loving” countries.
This should continue to promote higher global asset prices.
On that note, let’s look at a couple of key charts …
Here’s a look at stocks.
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The S&P 500 neared the all-time highs today and reversed into the close. And gold sold off aggressively today into the VP announcement. But it retests the 2011 record highs, which should be a buying opportunity. |