What IMHO we should be watching is IF the Dems win these GA Senate races taking the majority of the Senate.
The market does not like when one party has complete control.
Fully agree. The market has rejoiced over gridlock, but (today’s news is that) what we view as widespread fraud will be ratified into full Dem control. We’re just going to have to deal with it.
All that IMO should be done today is to consider what sectors might do well/badly under full Dem control.
IMO:
Healthcare should do well. The drug cos will undoubtedly pay off Dem reps to expand back to an 0care model, and we will all pay for it. Sucks, but it’s probably true. (I could say that plaenty of times)
Infrastruture could do well.
I think the casinos should do poorly, given that CV is rising and Bagobiden leans towards full lockdowns. They are, after all, our saviors.
Airlines = dead, IMO.
Energy = NG
BIG Banks, better, bec the dollar will weaken, driving rates UP, which banks like. Regionals, worse, because home lending should slow. Playable via KRE.
I’m somewhat focused on the homebuilder sector, XHB, which I view as a short bec it is a badly overcrowded trade...but if rates rise it should tamp down the performance of the sector. But you have to be careful with that etf, because it has lots of Home Depot, and HD does well when people are shut in, doing projects. It’s isn’t all DR Horton and Beazer.
todays’ random thots