Today voters in the United States will decide which political party controls Congress.
From the perspective of the financial markets, it doesn’t matter.
Regardless of whether Congress is controlled by Democrats or Republicans, the bull market in stocks is OVER. Yes we might get a bit of a rally based on the market digesting tonight’s results, but THE TOP is in for stocks.
That’s actually the good news… or the less bad news, as it were. The REALLY BAD NEWS is that the US financial system might enter a crisis in 2019.
The bond market continues to blow up with yields on the ALL-IMPORTANT 10-Year US Treasury retesting their recent highs. Bear in mind, this is happening at a time when the US is planning a $1.3 TRILLION deficit next year and will be relying HEAVILY on the debt markets to fund this.