....someone listening to the news and staring at their screens last night seeing a market down more than 5% may have been tempted to act brashly and sell. It may have felt good at the time, but if you decided to sleep on it for a few hours, you would be looking at a whole different picture this morning, when the futures and then cash trading erased nearly all of their declines. You would have also probably come to the realization that while the President is still the most powerful person in the world, no one person is bigger than nor has the power to control the US economy or the stock market. So even if you think Trump’s policies are bad for the economy (which half of America obviously didn’t believe), the US government still has a number of checks and balances in place to counter any possibility of destructive policies, even if one party controls the Oval Office, Senate, and House. The action overnight also reminds us of another piece of advice we have heard over time – nothing ever good happens in after-hours trading.Click here if you missed my video commentary from last night. I mentioned how tough it can be to sustain a washout against already negative sentiment, and the fact that hedges (Mark Cuban, for one, said that he put on the biggest hedge of his life just in case Trump wins) ultimately have to cover, and that can lead to violent upside rallies.
Wednesday, November 9, 2016
Bonus Quote of the day: Sleep On It
Bespoke Investment Group offers timely wisdom: