Alec Hogg: Stocks soar as Mr Market excited by likely US election result

Share markets hate uncertainty. So, it seems confusing that US share prices are surging at a time when this week's election results remain in abeyance. The reaction, however, is rational. In October, equity markets fell sharply as investors priced in the cost of an expected "Blue Wave" of a Democratic Party landslide that never arrived. Prices are readjusting to the reality of a split Congress..Also read: Alec Hogg: Not quite done, but US voting may have provided perfect result.Both the S&P500 and Dow indices gained another 2% on Thursday night, their fourth consecutive increase of more than a percentage point in a single session. Our partners at the Wall Street Journal report this to be the longest winning streak for the indices since October 1982. It's a run which takes the S&P and Dow to within a few percentage points of records set in early September..___STEADY_PAYWALL___.The most likely election result – Biden as president, Republicans holding the Senate – has been even better news for tech stocks. The Nasdaq Composite Index is still on a tear, gaining another 2.6% last night to get within a fraction of its September peak. Those who have replicated the BizNews Share portfolio will delight in another strong showing last night from Amazon (+2.5%), Apple (+3.5%), Spotify (+7.2%), Slack (+5%), Netflix (+3.4%), Cloudflare (+3.3%) and Microsoft (+3.2%)..Also read: Alec Hogg: Communist China stops world's biggest IPO.Apart from promising to hike personal, company and capital gains taxes, the Democratic Party would have also introduced a Green New Deal (promoting renewables) and expand the Affordable Care Act, both of which analysts reckon to be ruinously expensive projects. With a Republican Senate likely to veto such proposals, investors are celebrating. Which, despite the other uncertainties, is the rational thing to do..For your attention today….WEBINAR ALERT….* In the Rational Radio webinar on Monday, Capitec CEO Gerrie Fourie will be our guest, talking about recently released financial results and its innovative partnerships with SA Home Loans and Easy Equities. On the quizzing side, joining David Shapiro is SA's top financial sector investment analyst, Kokkie Kooyman. It's only for Premium members. Click here to register: https://attendee.gotowebinar.com/register/6730147365502274830.* And then on Wednesday at noon we get to hear how to get a US Green Card from Matt Hogan, a VP with CMB Regional Centers, which for over 20 years has been securing EB-5 visas for those who want to live in America. Click here to register: https://attendee.gotowebinar.com/register/2883703850607113232.FOR DOWNLOADING….* If you like to consume your news through a combination of old style layout and clickable links, you'll love our most recent innovation. The latest BizNews Digest PDF is a cracker – and is now available to read or for downloading. To see why thousands of BizNews community members love it so much click on this link: https://bit.ly/3et8qf4.* If you follow the top performing BizNews share portfolio, be sure to listen to the latest episode of my Inside Investing podcast featuring in-depth discussions about Apple, Amazon, Naspers, Orbvest and Richemont. Here's the link: https://www.biznews.com/global-investing/2020/11/04/inside-investing-tech-stocks.DOWNLOAD THE FREE BIZNEWS.COM APPClick on the links below to download your own Biznews.com App:.Apple: https://apps.apple.com/za/app/biznews-com/id1517392839.Android: https://play.google.com/store/apps/details?id=com.goodbarber.biznews&hl=en

Alec Hogg: Stocks soar as Mr Market excited by likely US election result

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