After a long week of counting it appears that Joe Biden will be the next president of the United States. It also looks like the Democrats will retain their majority in the House of Representatives and the US Senate is still up in the air as to which party will be in the majority. Georgia holds the balance of power in that both of their senatorial positions were open, and both are headed for a runoff in January.

Should we end up with a divided federal government, the last word of the attached article is one we all need to become very familiar with. “Gridlock”. Gridlock is second only to congress being in recess, as Will Rogers once said, in that nothing bad can happen.

After reading the attached article, “So much for the Wisdom of Financial Markets”, I am reminded that, in the short run, financial markets are chaotic but in the long run, they seem to indicate that, over time, markets generally rise, dividends increase and long-term investors seem to profit. I hope you take the time to read this article. It coincides with my belief that markets are somewhat efficient and business is answerable to their shareholders. In this case, shareholders vote with their feet. The fact that equities outpace inflation by a considerable amount means that we need to be patient and prudent.

So, in time, this election will be over, and we will move on. Hopefully, saner heads will prevail and congress to get on with helping America solve some of the major issues we face. The good news is that Labor Markets beat the forecast for the month of October, the 3rd quarter GDP was the best on record and equities had a pretty strong showing last week. As I said last week,


As always, should you have any questions or wish to speak with me, please email or call. Now let’s all go out and have a super week.

Doug Alden

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