Risk off! Stimulus negotiations seem to be done for now (without an agreement), earnings are in full swing, the Presidential election is five days away, and two of Europe’s largest economies are moving towards lockdowns. One of those generally can halt investors, but all occurring at the once are making investors rethink their risk profile. Risk assets are getting hit hard across the board, with Oil -6%, Silver -4.7%, Equities -2.8%, and “safe” havens Treasuries/ Dollar moving higher. In equities, the pain is across the board. Insurers are the best sector (only down 1.2%), while industries exposed to lockdowns are underperforming (Hotels -3.4%, Airlines -4.3%). While the tape is very red, it is interesting to see the Value down less than Growth, by about 72bps (SPYV -2.53%/ SPYG -3.23%).
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