I Get It… The Bond Markets Don’t Like It Either

Are you sick and tired of all these political commercials? It’s driving us crazy to hear the non-stop campaign messages. We are all ready for this election season to be over!

Is the Election Affecting Interest Rates?

It’s not only us: it turns out that the bond markets don’t like it either, and it’s not helping interest rates. As we get closer and closer to the election, we are seeing more volatility in the bond markets. The bonds don’t like it when there is a lot of indecision and unknowing about what is happening in our country.

Nobody knows what the election outcome will be. We’ve talked about this before: we can’t predict what the future has in store based on who gets elected.

What I’ve been seeing is that the bond markets seem to be hedging a bit that it could be Trump winning. It could be bad for interest rates if Trump is elected. But who knows?!

The market runs on emotion. And there is a lot of this kind of stuff going on out there.

Nobody Can Predict the Future

Long story short, we have times when nobody knows what is going on (which happens because of various factors, including politics). A week from now, when the election is over, how long will it take before we actually get a decision? We can expect that things in the bond markets will continue to be volatile between now and then.

The good news is that the equity markets seem to be holding strong. There were a few weeks when things got a little funky. For now, all we can do is cross our fingers and get through this time, and wait for the market to get back to normal when the election is over. That’s what I am hoping for!

That’s my message for today. Let’s all get out to vote and we’ll see what happens after the dust clears from this election.