Equities fundamentals remain solid amidst election-related uncertainty Array ( [cookie] => 173aaf-da1bbc-1f54b9-040222-4df555 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 1 [subscriber] => 0 [role] => fsi_macro [visitor_id] => 568007 [reason] => [method] => ) 1

"Champions are champions not because they do anything extraordinary but because they do the ordinary things better than anyone else." ~ Chuck Noll

Good evening,

A month ago, Fundstrat Head of Research Tom Lee warned that October could be "iffy" for stock investors, and although he was surprised by the strong advances we saw during the month, the S&P 500 ultimately ended down about 1% for the month. That's not to say that this is the start of a major decline, however. Lee still sees stocks as having solid fundamentals. For one thing, "real revenue growth, adjusted for inflation, is surging," he told clients during a special election installment of his monthly Market Update webinar.

However, he continues to see the possibility of near-term volatility and challenging conditions for the month of November, due to some recently emerging headwinds. One of those stems from the expectation that the uncertainty surrounding the upcoming election could extend well past November 5, Election Day. A survey of our clients during the webinar showed that roughly 75% of them believe that the results will only be made clear between mid-November and the end of the year. VIX futures trading suggests that the market agrees. The VIX term structure is currently inverted and is staying ...