Bond Market Still Matters- Earnings: FTS, TRP, CU, FN, AW, Preferred Shares
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Markets are at risk from excessive dependence on low interest rates, combined with too much government stimulus. How this plays out in the near term depends on the US election results, and longer term getting the COVID pandemic coming under control.
The lessons learned from the Global Financial Crisis do not apply to the current political and economic situation. Since then, most all of the remaining central bank liquidity has been used up, and politics in the US, the largest single economic entity in the world, have become overly aggressive. The election results, beginning late Tuesday are unpredictable, predominantly with negative economic outcomes, although some much shorter lived.
Just as the COVID virus is an exogenous event powerfully charting its own course, the pending US election transition ahead has a chance of adding to, not decreasing the chaos. Near term is a couple of days, longer term is anything beyond that.
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