Incredible rally in stock markets

The results of the US election were the consensus worst-case possible. The Treasury market is signaling that high fiscal spending isn't coming and the results are being contested. At the same time, the US hit 100,000 virus cases for the first time yesterday.

Yet equities are absolutely raging. US stock futures point to another 55-point gain in the S&P 500 on top of yesterday's 74 point rally. The FOMO may just be getting started.

Yes, tax hikes are off the table but I maintain that there was no real chance of that anyway given the amount of red Democrats in congress.

The reality is that cheap money always wins. As I wrote yesterday, the ability to trade on margin on 1.5% loans with no reasonable likelihood of rate hikes any time soon is an unstoppable force. The price action since the election underscores the point.

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