Also, speaking hypothetically, if a political candidate had stated policy preferences such as corporate tax cuts that could directly cause equity in public companies to become more valuable, and that candidate was elected to office, then forward-looking investors might decide to increase their exposure to equities and reduce their exposure to other asset classes, such as gold and treasuries. This could explain price rises in equities, a reduction in price for gold, and also a reduction in price (= increase in yield) for government bonds.Same reason stocks went up and VIX went down, a clear outcome and certainty after an election make the market happy, at least short term.More interesting to me is why gold tanked when Trump won. I have my own theory, but don't want to pick any fights.
Statistics: Posted by pseudoiterative — Fri Nov 08, 2024 1:45 am — Replies 39 — Views 3106