Many investors believe that financial markets react to the news. But it’s a bit more nuanced than that. Asset prices move with respect to their expectation of the news, versus the actual events that play out. It’s a cliché, but true: Markets don’t like uncertainty. As I write, it appears that we will (eventually) have a clear winner to the 2020 election. Social unrest also appears to be less than feared. Plus, the likelihood of Congressional gridlock increases the chances that taxes will not rise. All-in-all, a “slam dunk” for Mr. and Ms. Market, who went to bed Tuesday night fearing worse.… Read more