Massive Turnout for Presidential, I mean, Midterm Election

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The winner is…social media. Wow, staggering early voting numbers and expected record turnout is getting close to what we usually see in a presidential election. The stakes are high and all attention is on the House of Representatives. This looks like a coin toss for Republican and Democrats. A positive in all of this is that the election will be over. The results will be certain – whatever party wins. I believe this will be a market positive since the uncertainty will be removed. There may be an initial spike in volatility that will ultimately calm down. Savvy investors will once again turn their attention back to the economic boom focusing on yesterday’s strong October ISM Non-Manufacturing Services index with a reading of 60.3, near a 21-year record high. This result bolsters last week’s strong employment report and ISM Manufacturing report. Meanwhile, Eurozone services PMI was unexpectedly revised up and German September manufacturing orders exceeded expectations. Let us get back to fundamentals and remember the British adage “Be Calm and Carry On.”

Please review the ISM Services chart in the Voya Global Perspectives book.

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