For a while now, there has been substantial expectation about what US president-elect Biden’s proposal will be on the stimulus front. Many analysts have attributed the recent run-up in stocks as an anticipation of more fiscal spending. And, generally, we tend to assume that would help the economy. So, why did futures turn around after Biden announced a $1.9T spending program? After all, the market has been expecting something in the order of $1.0T in spending. Even though the Biden campaign had been championing $2.0T since last October. More spending is good, right? First, the Political There are two issues that ... (full story)