Morning

What now?

Stock markets went from a funk to a gush overnight. Bond yields fell. Gold went up as the US dollar sank. Investors nervously watched a political eruption happening, then piled on. In most quarters of the world there was a collective sigh of relief as it became clear the Trump Era just ended.

Yeah, he’s still here. A lame duck, Probably an angry duck. But the MAGA coalition saw its wheels fall off as Americans handed the House and the Senate to the Dems with a force few expected. The guy in the White House had been increasingly erratic, unreliable, dangerous and delusional.

At midnight, as his base of support evaporated and places that had been Republican red for over a generation went blue, he posted this…

So, he still didn’t get it. Tariffs, Iran, energy prices, inflation, ICE, racism, corruption, Islamophobia, transphobia, medicare cuts and creating a government run by billionaires while mortgage rates topped 7% and food stamps were cut all led to a hate of the president so visceral that he destroyed his own party.

But what does it mean for us? Our nation? Your TFSA?

It’s all good. So far.

Markets dislike uncertainty and the election results have definitely cleared the air. Congress will be returned to Democratic control as the sycophantic Republican majority becomes a rump. Investors have more confidence now that a weird Executive Order can appear without notice or Congressional pushback. Now that there’s divided government there is less chance of rogue policies being implemented while a more of a normal democratic process is restored.

More calm. Calm is good.

Meanwhile a big rush into bonds drove prices up and yields down, as the benchmark 10-year US Treasury tumbled to under 5%. Bonds are a safe haven in times of legislative gridlock, which could be the case for two years. This takes pressure off the Fed – and the Bank of Canada – and could stabilize lending costs.

The loonie jumped to 71.7 cents, up half a percentage point, while gold added $115 an ounce (a gain of almost 3%) as the American currency declined. The greenback was reacting to lower bond yields and a feeling the US central bank will now back off. Feeding that was concern Dems in Congress will move ahead with what the public wants – guardrails on AI. There’s huge concern about how this technology could eat jobs, erase personal privacy and threaten humanity all while massive, ugly, power-sucking data centres mushroom in communities that don’t want them.

Could that potential whacking of AI hurt a stock market that’s gorged on it for months?

Maybe. But regulation of the industry is what its leaders have been asking for and could slow an AI arms race that has caused the big players to borrow and spend unconscionable amounts of money. Again, calm things down. Calm is good.

Tesla stock dropped a chunk. Apparently a trillionaire can’t buy a senator (Texas rubby Ken Paxton) after all. Oil fell since odds of an Iran ceasefire grew, pressured by Congress. Defence stocks took a beating as the pugilistic president was shackled, suggesting military spending might slow and the moron running the Department of War is impeached. Clean energy companies saw their value romp higher since the windmill-killer falls.

Of course, the blue wave also brings risks. Dems could stall or block debt-ceiling negotiations, leading to gridlock, government showdown and a bond mess. The altered Senate could block government appointments, bring down cabinet members and impact agencies from the Fed to the SEC. And the federal deficit could expand if the Democrats do what voters ask, making health care costs fall for average families or restoring government services that the Trump DOGE gang axed.

For Canada, Carney and the country’s workers, this is a good day. A reasonable trade deal with the US just got closer. The lifespan of tariffs grew shorter. The wisdom of Ottawa standing up to a bully until the wind shifted in our favour grew even wiser.

We are getting through this ordeal on our feet, not our knees.

It’s morning again.

About the picture: “Enjoy seeing these little guys usually parked outside one of the thousands of coffee shops here in the old quarter of Hanoi,” writes Dan. “All are well behaved considering the amount of noise, traffic and people in the area. Also impressed at how well they listen and obey their owners! Communist Vietnam is super busy and though inflation is here, the only people talking about it is tourists relating their stories from their home countries.”

To be in touch or send a picture of your beast, email to ‘[email protected]’.

Source: https://www.greaterfool.ca/2026/11/04/morning/