Wednesday, November 7, 2012

No hanging chads with Thanksgiving dinner this year as America has clearly chosen four more years.  Quant’s rankings today reflect yesterday’s trading so the market’s reaction to the election will not affect the ranks until tomorrow’s run.  If the algorithm had any foresight it was perhaps shown in foreign funds gaining and some domestic ones dropping.  The iShares MSCI EAFE Index Fund (EFA) gained 16 positions into 3rd place and their France Index Fund (EWQ) rose 4 spots into 7th place.  On the downside, the Vanguard Energy Sector Fund (VDE) fell 93 positions into 103rd place, out of the top 25 where it has been for much of the past month.  Also dropping 93 positions was the iShares S&P MidCap 400 Index Fund (IJH) now at 119th place, close to where it has been for the past month except for a few recent days.  Today’s trading will reflect the market’s view of the election results and we’ll see what Quant has to say tomorrow.  Status quo in Washington DC keeps us on a forward path to the fiscal cliff and we’ll be particularly interested in what Quant has to tell us about that. Health care and defense are slated for large spending sequesters as tax increases will hit the macro economy.  Maybe that’s why the two China funds are still in 1st and 2nd place.   China chooses their new leader later this week but that outcome is already known.  Check in daily with ETF Global to see Quant’s view of how our politicians decide to deal with the pressing economic issues facing our great nation.

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