Weekly Market Commentary 11/9/2018

Investors welcomed back gridlock with open arms. Thanks to a powerful post-election rally that built on the gains leading up to the election, the Dow Jones Industrial average has clawed back almost 65% of the outsized losses incurred in October. Even with Friday’s modest setback, the Dow stood only about 3.0% below its October 3 record high by the end of the week. It seems that participants are pleased with the prospect that sweeping legislative changes will not be forthcoming in the near future, as a divided and highly polarized Congress should put the kibosh on bold policy initiatives pushed by either Democrats or Republicans. With a Goldilocks economy unfolding, investors are understandably loath to have anything rock the boat, something that Washington is fully equipped to deliver with untimely meddling.