Congratulations to America for speaking out yesterday at the polls and for taking the first step in holding Washington accountable for their actions. No matter what side of the aisle you are on, these historic mid-terms have put Congress on alert and that warning is to start genuinely representing the people or else!
Now that the elections are over what will the markets focus on? One matter for sure is whether or not the Bush tax cuts will be extended. I think both U.S. equities and corporate America need clarity across the board with not only tax issues, but for all economic policies in order for real confidence to occur. Also I think U.S. equities will continue to lift if going forward corporate earnings can demonstrate top-line growth. Yes so far earnings this year have been impressive however those results for the most part have come from better efficiencies, higher productivity and cost cutting measures. I think when top-line growth begins, the markets reaction could catch everyone off guard.
Have a great day…