If There Was Any Doubt Which Candidate Markets Prefer, There Isn't Now
The bombshell news that FBI Director Comey has reopened the investigation into Hillary’s Clinton’s abuse of email protocol not only took the political class by storm, but also financial markets.
In just minutes after the announcement on Friday, Gold jumped $1270 to $1280, the U.S. dollar sold off against the Euro from 1.0940 to 1.0980, the S&P500 dropped sharply 2140 to 2115, yields on the U.S. Treasuries fell from 1.85% to 1.8%, and the VIX rallied from just under 15 to over 17. These were big moves over a short period of time on what would have otherwise been a quiet Friday afternoon in NY trading.
Not surprisingly bets on websites like Predictit showed Clinton’s chances of winning in November dropped sharply as well, from 81% to 70%. It is a mess, and Comey and Clinton have only themselves to blame. Comey went soft to start, promised ongoing cooperation with Congress as a gesture of guilt, and was compelled to reveal more for fear it would be leaked by incensed FBI personnel who felt charges should have been brought against Clinton to begin with.
Markets want the status quo: Hillary Clinton is the status quo. Yet, the status quo is quietly killing America. The status quo is the continued move towards globalization. Financial markets led the way on globalization in the 1990’s; the top players have a lot of money to risk if Trump wins. Hillary allows them to continue to abuse the system, take advantage of pension plans for fees and commissions, and expand the wage gap between the haves and have-nots.