fuzzballl 12:14 pm on Friday, November 2, 2018

Bond prices and the election?

This article is a few months old but would you guys agree with this? Not being left or right politically just wondering if Dems controlling the house would be a catalyst for bonds to rise? I’ve got some TLT exposure in the event of a rally so debating about booking a big chunk of it Monday.

https://www.marketwatch.com/story/midterm-swing-to-democrats-could-lift-bonds-strategists-say-2018-08-23

jsd501 12:25 pm on Friday, November 2, 2018

Sometimes people write something because they have to write something. IMHO, the economy is doing well because of the tax cuts and stimulus from the deficit. The FED is concerned about the risk of inflation so wants to raise rates. They are doing just that and no matter who controls the house or senate will continue to raise rates. I think the FED is behind the curve but they will go at their pace. If they continue to slowly raise rates it will eventually be a problem for the stock market.
- fuzzballl 12:28 pm on Friday, November 2, 2018
  
  Very possible. I’m leaning towards a gridlocked Washington would maybe slow the economy enough where maybe less rate hikes would be needed so possibly higher or at least flat bonds. All just a guess but it’s gonna be fun to watch.
hcgdavis 4:11 pm on Friday, November 2, 2018

Have not read the article but market likes stalemate and inaction. If dems control house and maybe senate, then Trump is lame duck unless they go for impeachment. Then the market might not like it so much.