IN OBSERVANCE OF VETERANS DAY, ALL PEAPACK-GLADSTONE BANK LOCATIONS WILL BE CLOSED ON MONDAY, NOVEMBER 12, 2018.
IMPORTANT NOTICE :
NEVER trust wiring or ACH instructions sent via email. ALWAYS confirm with the sender by phone or in-person. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing, sophisticated, and often appear to come from someone you know or work with. Always independently confirm wiring or ACH instructions in-person or via a telephone call to a trusted and verified phone number. NEVER wire or ACH money without double-checking that the wiring or ACH instructions are correct.
The Weekly Economic & Market Recap
November 9, 2018
The midterm election is now behind us. Investors were reassured as election results were largely consistent with the market’s expectations prior to the election, so equity markets experienced a strong relief rally. In direct contrast to the October selloff, which to some degree was precipitated by the uncertainty regarding the election and fear over a potential significant shift in economic policy, the rally this week was a recognition of the likelihood of legislative gridlock ahead. Given the rancor in Washington, it will be difficult to find bipartisan compromise in many areas, but infrastructure spending seems to be an interest shared by both the administration and House Democrats. Pharmaceutical pricing and health care spending is another area that could present common ground for both parties to work together. The equity market overall may benefit as a divided government has traditionally provided a constructive environment for investors. A divided government tends to hamstring the more extreme ambitions and constrain policy shifts. Historically, the six months following the midterm election has been a good time to be invested in equities. Despite growing concerns over more constrictive monetary policy, current economic fundaments remain favorable for equities. As a final thought, the election outcome was not surprising, but it was striking how engaged the electorate was and how much money was spent. According to the Federal Election Commission, campaign filings indicated that $4.7 billion had already been spent on the midterm elections through the middle of October and spending was projected to top $5.2 billion by the November election. That marks a significant increase from just four years ago when politicians spent a midterm record of $3.8 billion.
Click below to listen to this week's Peapack-Gladstone Bank Market Report as heard on WCBS NewsRadio 880.