FEAR IS INCREASING

Equities are hovering around last July levels as the markets have become spooked by the specter of higher interest and the possibility of a Trump presidency as a ABC/Washington Post poll showed that Trump with 46% of the vote compared to Clinton’s 45%.

The fear factor is rising in so many dimensions.

Commenting about interest rates, the two day Fed meeting concludes today.  No change is expected but all believe the narrative will suggest an increase in rates is all but done in December given the data.

Speaking of which, the ISM Manufacturing Index was nominally higher than expected suggesting that growth in this sector is consistent to a stronger fourth quarter.  The 51.9 reading was nominally higher than the 51 averaged thus far this year and the 51.3 measured in 2015.  The prices paid component rose to a three month high of 54.5 from 53 thus igniting some concern that inflation may be stirring.

What can I write about the election??  Life is indeed stranger than fiction but will again opine for as ugly and visceral as democracy may be, it beats any alternative.

Last night the foreign markets were down. London was down 0.32%, Paris down 0.58% and Frankfurt down 0.69%.  China was down 0.63%,  Japan down 1.76% and Hang Sang down 1.45%.

The Dow should open little changed ahead of the outcome of the Fed meeting and the assessment of earnings and the chances of a Donald Trump presidency.  The 10-year is up 8/32 ot yield 1.80%.

kent
The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. The information contained herein has been compiled from sources believed to be reliable; however, there is no guarantee of its accuracy or completeness. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. The material provided in Daily Market Commentaries or on this website should be used for informational purposes only and in no way should be relied upon for financial advice. Please be sure to consult your own financial advisor when making decisions regarding your financial management. Members of FINRA and SIPC, Capitol Securities Management is a privately owned full-service retail brokerage and investment advisory firm headquartered in Richmond, Virginia. For nearly 30 years, we have been serving the needs of our investors. Today, more than 200 Capitol Securities Management investment professionals and support staff serve approximately 18,000 customer accounts from Southern Florida to the New England coast.