Markets were relatively quiet on the day, as investors seem to be holding their breath for the U.S. presidential election that will take place tomorrow. Governor Romney and Barack Obama will duke it out in a battle that will more than likely come down to the state of Ohio. No republican has ever won the White House without Ohio’s electoral votes, prompting the saying “as Ohio goes, so goes the nation” (though there are multiple iterations). While it is not clear how soon we will get the results, it is sure to stir up markets, as investors all have their own opinions as to which candidate will be better for the economy [see also Seven Simple & Cheap ETF Model Portfolios].
Though markets were choppy in trading, all three major indexes were able to come away with a positive session. The S&P 500 (SPY) jumped by 0.20% while the Dow Jones gained (DIA) and the Nasdaq (QQQ) went up a handsome 0.66%. Election results won’t come in until Tuesday night at the earliest, but it would not be a surprise to see markets a little bit volatile for the next few days, until everyone has digested the news of the winner.
Bond ETF Roundup
The bond market had a relatively quiet day, though Government 20 year Treasuries (TLT) edged up 0.56% despite election jitters. The fixed income space could be considerably active in the next few days, as Romney and Obama each have very different plans for dealing with U.S. debt and the deficit.
The energy world saw a much needed jump after a few rough days, with Oil (USO) jumping a nice 0.83%. The precious metals world was also smiled upon, as Silver (SLV) held onto its volatile streak, finishing up 0.73% on the day despite some big swings in recent sessions. It is generally agreed that an Obama victory is favorable for precious metals, so be sure to keep a close eye on these funds throughout the week.ETF Chart of the Day #1: VXX
Markets may have finished higher, but their choppy path to prosperity on the day allowed for the VIX to climb higher, a rather unusual result. This ETN was able to gain 1.8% on the day, adding to Friday’s gains of more than 2.5% [see also Low Volatility ETFdb Portfolio].
The Utilities Select Sector SPDR took a beating today, as the fund dipped more than 1.6% and traded nearly 33% more shares than normal. Utilities companies are still healing from Superstorm Sandy as the damages and costs continue to pile up for these companies [see also 5 High Yielding Utilities ETFs].
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- Barack Obama