Market Update From Valeo Financial Advisors (November 12, 2016)
Globally markets swung wildly Tuesday night as U.S. election results were being tabulated. Overnight U.S. stock market futures fell 5% causing trading to be suspended. Other national stock market indexes fell significantly, in line with the U.S. As dawn broke in the U.S., risk assets staged a dramatic comeback. By the end of Wednesday most major stock market indexes were positive. A stunning reversal. Along a similar timeline, interest rates on U.S. Treasury bonds fell overnight on Tuesday only to rise significantly by the end of the week. The 10-year U.S. Treasury note yield increased from 1.79% last week to 2.12% to close this week, resulting in the largest four day advance since June 2013.