An Election Day rally turned into a post-Election Day rout
as investors reversed course following the election
results. The rally wasn’t a one-day phenomenon though; it
started a week earlier. From a low of 848.92 to a high of
1,005.75, the seven-day revival netted 18.47 percent.
No one can really understand what investors are thinking
because there are hundreds of millions of them, plus the
billions of other people whose decisions affect the
economy. It doesn’t stop political partisans from
cheering a market rally, while the other side points to the
drop a day later. But unless there are specific policies
enacted, which directly impact the markets—such as
capital gains tax cuts or tax hikes, which immediately
change the value of the entire market—the effect of new
policies will be concentrated in specific sectors or even
limited to individual companies.
more...
Since last Tuesday’s close, the Sector Portfolio decreased
5.28 percent versus a 9.74 percent drop in the S&P 500
Index. The portfolio is leading the benchmark in 2008 with a
negative 34.03 percent return. The International Portfolio
declined 4.04 percent versus a 15.17 percent decrease in the
EAFE Index over the same period. Year to date, the
International Portfolio leads its benchmark with a negative
36.05 percent return.
more...
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