Does october start most interesting. As you well know, the president of the United States at walter reed hospital. He has been tweeting actively this morning, almost as much as jon ferro. In the markets, i would say weve got a bit of a celebration. Futures up 21, dow futures up 184. What do you make of the markets this morning . Jonathan a strong correlation between the president s health, his tweeting activity, and equity markets. We hope we avoided the local crisis, the chaos that many people were thinking about last friday. Up 0. 6 on the s p. In the bond market, this is where things get interesting for treasuries headed into election day. If the polling remains the way the polling looks right now, at a national level, the 14 point lead joe biden at the moment, at some point you do start to think about prices in the fiscal stuff. The key risk at the moment, i am catching up with Henry Peabody a little later tom on one of your other properties. Jonathan his view is that the risk the
Anyway. Is this a couple of isolated cases or the start of sending broader . It still seems more isolated. Clearly the tax package will create winners and losers. Tax reform has to happen. If it doesnt happen, it gets ugly. Everything gets ugly very fast. It is no longer agreement for credit markets. It is more yellow. There are still some companies with decent fundamentals, but there is a lot of sectors or more sectors under pressure. Youre not getting paid an awful lot. Avenue as an investor yet to be careful. These days when the markets rollover it feels volatility needs to rise. My concern is what if the a goes to 260 . That could be an genuine competitor to the credit market. That is where i think the bleed could be more systemic. The 800 pound gorilla is whether or not this build of a corporate leverage which we have seen over the past few years is sustainable or does it lead to something less benign . Jonathan we have a full house in new york city today. Joining me is henry peab
Anyway. Is this a couple of isolated cases or the start of sending of something broader . It still seems more isolated. Clearly the tax package will create winners and losers. Tax reform has to happen. If it doesnt happen, it gets ugly. Stock markets good ugly. Stock markets get ugly. Everything gets ugly very fast. It is no longer agreement for credit markets. It is more yellow. There are still some companies with decent fundamentals but there is a lot of sectors or more sectors under pressure. Youre not getting paid an awful lot. As an investor you have to be careful. These days when the markets rollover it feels volatility needs to rise. My concern is what if the market goes to 260 . That could be interesting. That is a genuine competitor to the credit market. That is where i think the bleed could be more systemic. The 800 pound gorilla is whether or not this build up of a corporate leverage which we have seen over the past few years is sustainable or does it lead to something less
Is this a couple of isolated cases or the start of something broader . Right now it still seems more isolated. Clearly the tax package will create winners and losers. Tax reform has to happen. If it doesnt happen, it gets ugly. Stock markets get ugly. Everything gets ugly very fast. It is no longer agreement for a green light, for credit markets. It is more yellow. There are still some companies with decent fundamentals but there is a lot of sectors or more sectors under pressure. Youre not getting paid an awful lot. As an investor you have to be careful. Buying quality. These days when the markets rollover it feels volatility needs to rise. Maybe that is what we are seeing. My concern is what if the market goes to 260 . That could be interesting. That is a genuine competitor to the credit market. That is where i think the bleed could be more systemic. The 800 pound gorilla is whether or not this build up of a corporate leverage which we have seen over the past few years is sustainable
Is this a couple of isolated cases or the start of something broader . Right now, it still seems more isolated. Clearly the tax package will create winners and losers. Tax reform has to happen. If it doesnt happen, it gets ugly. Stock markets get ugly. Everything gets ugly very fast. It is no longer a green light, for credit markets. It is more yellow. There are still some companies with decent fundamentals but there is a lot of sectors or more sectors under pressure. Youre not getting paid an awful lot. As an investor you have to be careful. Buying quality. These days when the markets rollover it feels volatility needs to rise. Maybe that is what we are seeing. My concern is what if the tenyear goes to 260 . That could be interesting. That is a genuine competitor to the credit market. That is where i think the bleed could be more systemic. The 800 pound gorilla is whether or not this build up of a corporate leverage which we have seen over the past few years is sustainable or does it