Big week; a big reaction?

Market observations for the week of Oct.25 to Oct. 29, 2010

Claymore Investments, Inc. 2 November, 2010 | 9:44PM
Facebook Twitter LinkedIn

The major market indices finished the week little changed as investors appeared indecisive ahead of this week's barrage of market-moving events. Stocks have been trending sideways for the past couple of weeks as the markets appear to be caught in a period of price discovery while investors try to gauge what is currently discounted in the market and what is likely to come to fruition. The upcoming week is arguably one of the most important weeks of the year and the reaction to this week's events could set the tone of trading for the remainder of the year.

Known unknowns

While Republicans are expected to make significant headway in Tuesday's midterm elections in the United States, and the Federal Open Market Committee (FOMC) is likely to embark on another round of quantitative easing (QE) on Wednesday, there still appears to be many known unknowns. For instance, with a strong likelihood that the Republicans capture at least the House, the question becomes will this gridlock scenario lead to a lame duck environment (i.e. nothing gets done) or will a period of compromise develop? To get things like the Bush tax cuts extended, obviously compromise will be needed and the question then becomes whether disgruntled politicians have the intestinal fortitude to swallow their pride? The answer will likely depend on the final vote tally and the makeup of the new Congress.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free
Facebook Twitter LinkedIn

About Author

Claymore Investments, Inc.

Claymore Investments, Inc.  

© Copyright 2021 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies