Tuesday, September 27, 2016

US Debate #1: More Hype Than Substance



It was a debate for the ages, if you like facial expression. But if I was a part of the US electorate, I would not be thrilled that there was very little other than the personal attacks that came out of this "reality TV" episode which likely was off of the ratings charts. So the winners were really the networks and the "fact-checker's", who had numerous corrections to offer us: 


Decide for yourselves who had the most "fabrications".

Foreign exchange traders bought Mexican Peso's, so they think that Clinton may have had the edge. In overnight trading, equity markets popped up briefly, but ran into more selling for other reasons that make more sense (like concerns over banks).

In the end, the polls will give us an idea as to how the American people thought it all went and ultimately they are the ones who count. 

In the very end, it will be about whether the electorate wants change (fairly big change if what we are told will all come to fruition) or trying to evolve within the same style of system. 

For us, what matters most is the level of confidence that businesses and consumers put into whoever takes the helm. Will businesses be ready to finally release their purse strings to move forward with investment in productivity growth. 

Certainly at this point they are not.

Will consumers be confident enough to spend? 

The most recent data show that they are now deferring spending plans, which suggests that this election campaign is taking its toll on US economic growth.

I can't get any clarity in the future from listening to these two spar and I am not really certain how anyone can (except for the foreign exchange traders, perhaps).

It is webinar Tuesday and we shall be discussing this and other developments in financial markets, the global economy and any other issues that might impact the management of our wealth and portfolio strategy with our clients.

We will post the recorded version on our website at or about 5pm EDT: http://www.highrockcapital.ca/current-edition-of-the-weekly-webinar.html

Feedback...

If you would like to receive this blog directly into your inbox...

No comments: