Below is a chart and brief excerpt from today's Early Look written by Director of Research Daryl Jones.
As luck would have it, in our Q2 Themes presentation yesterday we outlined the asset allocation that should out-perform in a contested type scenario. This is based on what happened in Bush-Gore. I’ve included an outline of it in the chart of the day and, no surprise, it looks like a deep #Quad4 asset allocation – treasuries, low volatility, and gold outperform. On the other side of the ledger, risk assets – high beta, U.S. cyclicals, and growth- get beat like a rented mule.
And low and behold, we seem to be getting a #Quad4 morning. As Keith noted, in his Direct from KM note this morning:
Dollar is up and risk assets are down this morning, so far, as investors are clearly voting risk off following the “debate” last night.