Markets, shares and exchange traded funds (ETFs) are waiting to exhale as the fate of our nation is resting on tomorrow’s election. Meanwhile the dollar and housing markets are sliding as contending parties take their last day to bicker.This election, whatever the outcome, does boast a significant distinction from all its midterm predecessors. Alan Ableson for Barron’s on Yahoo Finance says it’s not due to the quality of candidates, rather it is the large amounts of money that have been raised on behalf of their candidacies.
Is it time to say goodbye to the bond bull market? Rising inflation and a larger budget deficit, no matter what party wins could mean that investment strategies shift with the change.[Know What To Expect From Your Bond ETF Portfolio.]
The U.S. dollar and the yen are moving up on the news of a Chinese report showing manufacturing accelerated spurred demand for higher- yielding assets. The two currencies also weakened on speculation the Federal Reserve and Bank of Japan will this week announce further measures to keep borrowing costs low to spur growth, reports Ron Harui and Monami Yui for Yahoo Finance. The yen declined to 112.56 per euro, when it slid 1.3 %, and the dollar dropped 0.3% to $1.3990 per euro. [US Dollar ETFs Play Both Sides Of The News.]
- PowerShares DB U.S. Dollar Index Bearish Fund (NYSEArca: UDN)
Amid some of the bleaker economic news there is some good. Insurance giant AIG has raised $37 billion from the sale of two foreign insurance units and will use that money to repay a government bailout. Stephen Bernard for Associated Press reports that the insurance giant closed its previously announced sale of American Life Insurance Co. on Monday. It sold ALICO to MetLife Inc. for $16.2 billion. The sale includes $7.2 billion in cash and $9 billion in MetLife securities.
Les Christie for CNN Money reports that the housing market still faces many problems: a weak economy, sluggish hiring, tight mortgage underwriting, falling home prices, and slowing sales. A rising number of foreclosures may still be looming over the next few yeas if the job market remains tattered. Declines in housing prices are also a big signal that the housing market is not on a stabilizing trend yet. [Homebuilder ETFs Wait on A Recovery.]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.