Thoughts {09.26.16}: A Few Things For You To Read

Some ideas to chew on and a few things for you to read.

The first Presidential debate will be held tonight at Hofstra University.  I think the winner of tonight will go a long way towards winning the election in November.  The election has turned in the past few weeks with Trump surging in the electoral map.  More states are rated toss-ups now than when we looked at the electoral map a few weeks ago.   All indications suggest about 100 million people will watch the debate tonight.  Markets will likely take their cues from how the candidates perform.  Go read Peggy Noonan over at the Wall Street Journal,  "The Year of the Reticent Voter".  

The market's decline on Friday probably had more to do with the past two day's gains than anything else.  Stocks were positive on the week and had their best move higher since the "Brexit" rebound  back in June.   The next event to watch for in stocks now that the Federal Reserve is off the table for a few months will be the upcoming earnings season.  That will kick off in October.  Also you know I think markets will become increasingly hostage to the elections.  The cynic in me also thinks there's a higher probability that stocks hang tight next week.  The 3rd quarter ends next Friday so money managers will be under the gun to show good numbers through then.  Wall Street will want to get paid!

Go read over at Bloomberg over in their "Briefs" section "The Hunt for Yield".  We may come back to this thought at a later date.  Note from the article that the S&P 500 yields about the same as a 10 year Treasury bond.  The S&P has the potential to grow in value over the next 10 years.  In a taxable account, you will be lucky to break even in a 10 year bond at current yield levels when you factor in inflation and taxes.  

Go read Danielle DiMartino Booth's latest column which discusses the Federal Reserve's latest decision on interest rates.  DiMartino Booth's posts are some of the best out there and should be read every week by investors.  While your at her blog go read her tribute a few weeks ago to the September 11 terror attacks.   You will not have a dry eye after reading "Angels Manning Heaven's Trading Floor".

I have to be out for part of today and tomorrow visiting clients.  I will try to post tomorrow but will be back for sure on Wednesday.

*Long ETFs related to the S&P 500 in client and personal accounts.  Please note that positions can change at any time without notice on this blog or on any other informational outlet.