Blog: Bitcoin Post Election Analysis
It's still not investing.
The breadth of the Republican victory moved markets. Markets react in different, but fairly predictable ways when the pro- or anti- business candidate is in the lead, but this time it was considered a toss-up. When (surprise, surprise!) we actually knew who the winner was the day after the election markets reacted in a way that the Fractal Market Hypothesis explains, as I discussed last week.
The bond market reaction is the one that may be the most important. It appears that the yield curve may be in the process of re-inverting. If so, the implications are pretty big. But we'll need a little more time to see if that's actually happening. The stock market reaction was also dramatic, but not as dramatic as the collapse of volatility. We need a little more time to see whether those moves are new trends, or just a quick reaction.
But the action in the crypto market is particularly notable, and may be more indicative of speculative sentiment than the other two, particularly if a real bubble is developing there.