Emerging Money Daily Audio Call November 3 - Volatility holding steady at elevated levels that augurs a move higher from here.
It’s a challenge to see how we remove any change in market fear until we get through the unknown of the US election where its possible to then see some relief on either candidate winning, Clearly a Clinton win will be a short term relief but that buzz will prove to be short lived. Trump may prove to be a short term relief if there is a composed and non-emotional assessment of the first days of a new Presidency but then let the re-rating of major asset classes begin, starting with the US Dollar and global bond markets.
Oil remains range bound in the bottom end of the recent range but above support that for Brent is $44.50. The supply data we are receiving is not challenging but it also symbolizes that everyone inside and outside of OPEC is rushing to a freeze or cut deal with their highest possible production. It makes sense that that data has been poor if a deal is getting done.
Airlines and Banks remain the best combination of valuation meets rotation trades for a reflationary world.
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