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EZ2

11/15/16 11:04 AM

#116574 RE: **D*A** #116573

NAK ~knack !!
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EZ2

11/15/16 11:27 AM

#116576 RE: **D*A** #116573

Traders are betting that the 'great rotation' into stocks has arrived

MARKETWATCH 11:27 AM ET 11/15/2016


'We won't know if it's the real deal for quite a while,' cautions one analyst

Investors are already embracing signs that Republican Donald Trump's presidential victory has ushered in a new paradigm for markets.

They call it the "great rotation trade." It's the period of an economic recovery when a selloff in bonds is accompanied by a powerful rally in equities.

Some portfolio managers have been watching for the advent of the rotation trade since the economic recovery began in 2009. But, thanks in part to massive bond-buying programs at the Federal Reserve and other central banks, it hadn't happened. Yet.

That appears to have changed last week, when stocks in the developed world outperformed bonds by the highest margin since 2011, noted Dave Lutz, head of exchange-traded funds at Jones Trading, in a research note.

Lutz shared this chart, detailing the magnitude of equities' outperformance last week relative to earlier in the year.

"Usually when you're in recovery mode, which we've essentially been in since 2009, there's a period where bond yields rise and stocks rise a lot," said Doug Foreman, CIO and portfolio manager at Kayne Anderson Rudnick. "This hasn't happened in six years. But maybe this time, it's actually going to happen."

To be sure, one week's worth of data is hardly enough to confirm a trend. Investors will be watching to see if the antipodal moves in bonds and equities that followed the election persist during the coming months.

"It's too early to declare victory," said Wasif Latif, head of global multi-assets at USAA Investments. "We won't know if it's the real deal for quite a while."

But it's difficult to ignore the promising outlook for global growth and corporate profits under a Trump administration, said Atul Lele, chief investment officer at hedge fund Deltec International, who believes the trend will continue.

And though it's premature to say whether Trump will follow through with his promises to boost fiscal spending and deregulate the financial sector, speculation on which the recent equity rally has been predicated, bullish investors remain hopeful.

"It's quite undeniable that this is a pro-growth inflationary stance being taken [by Trump]," Lele said.

U.S. stocks were trading mostly higher on Tuesday, though the Dow Jones Industrial has lagged the other benchmarks as it struggles to post a seventh straight session (http://www.marketwatch.com/story/dow-on-pace-for-7th-straight-up- session-2016-11-15) of gains.

Meanwhile, the aggressive bond selloff from the past week has stalled, (http://www.marketwatch.com/story/treasury- yields-fall-as-aggressive-selloff-stalls-2016-11-15) with Treasury yields moving sharply lower on Tuesday after striking roughly one-year highs. Bond yields move inversely to prices.

-Joseph Adinolfi; 415-439-6400; AskNewswires@dowjones.com


(END) Dow Jones Newswires
11-15-161127ET
Copyright (c) 2016 Dow Jones & Company, Inc.
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Seminole Red

11/15/16 12:07 PM

#116578 RE: **D*A** #116573

Dear Millennials,
After much thought I now think I understand your plight. You were living in the Matrix and have suddenly been unplugged against your will. You voted to take the blue pill and stay in your warm little safe space but you were forced to take the red pill instead. The real world is a harsh and ugly place where Communism and Socialism have caused the death of millions upon millions of people. The real world does not give you participation trophies or insulate you from being offended. In the real world nothing is free and actions have consequences.
In the Matrix you've never known a president other than Obama. The media never told you about his scandals and unconstitutional executive orders. You were continually told how great a president he was and how any decent was racist. The public schools never taught you about our history or how and why our government works the way it does. A prime example is all of the people that believe we live in a democracy. A democracy is nothing more than mob rule and that's why the left wants to eliminate the Electoral College in favor of the popular vote. Mobs are easily controlled by lies and propaganda.
The college system radicalized you by vilifying Republicans and capitalism all while pushing failed economic, political, and social policies. It also charged you fortunes for completely worthless degrees.
The media and Obama have convinced you that being out of work and having a rotten economy are the norms. You believe that bigger government and more taxes will solve all of your problems. Without a true understanding of our history and how government works you are easily convinced that there is no right or wrong and there are only gray areas. You are told that your feelings matter more than facts. That's why you are triggered when facts contradict your feelings.
The facts are that you've never been told the truth about Obama, the Clintons, or Donald Trump. You weren’t told about Bill Clinton’s impeachment, all the women he sexually assaulted, or his many trips to Pedophile Island. You weren’t told that Hillary Clinton lies about everything including stupid things that are easily disapproved. You weren’t told that the women accusing Trump of assaults were paid to do so and they later recanted their claims. You were only told how frightening he was and that the world would end if he was elected. You have been manipulated into believing that Hillary was a wonderful person that only cared about you and was easily going to win over that evil Donald Trump. You didn’t know that the polls were oversampling Democrats by 12% or more. You weren’t shown the Hillary rallies that only had a few hundred people where Trump had thousands. You probably didn’t see the Tim Kaine rally where 3 people came. That’s right, 3 people. The media either turned a blind eye to these details or willfully deceived you.
So the bottom line is you have a right to be mad about this election. However that does not give you the right to go out and assault people, block traffic, or destroy other people’s property. Don't blame the people that gave you the red pill. Instead blame the people who gave you the blue pill to begin with, lied to you, and didn’t give you the tools you needed to understand and cope with the outcome.
Welcome to the real world.