by Jason Bodner
November 12, 2024
It’s finally over.
On the one hand, I am obviously talking about the election – it was hotly debated down to the wire, but like him or hate him, Trump won decisively. George Washington won every vote. We’ll never have another president voted in unanimously. That honor is now retired, going to our first president alone.
On the other (a bit less obvious) hand, I am talking about the end of uncertainty. A decisive election allows everyone to move on, if they can. I’m not into politics; I’m into data and investing. As an investor, all one hopes for is a decisive election. That’s what we got, and the market loved it.
The Big Money Index (BMI) is still the best metric for revealing unusually large money flows in the stock market. In October, the BMI became overbought then dropped out of being overbought after only four days. As the election tightened, investors sidestepped risk, moving money out of stocks. Then, after election day (the orange vertical line), money gushed back into stocks:
Graphs are for illustrative and discussion purposes only. Please read important disclosures at the end of this commentary.
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