Did you predict this one? Did the presidential election surprise you? It certainly surprised the pundits who were saying it would be an uphill climb for one candidate and it was also hers to lose. But iTarget Inflation Ratet didn’t exactly turn out that way, did it? Regardless of whom you voted for it was a rather surprising result. And another prediction that was made, one we reported on here, that stocks were rather calm right before the election because Wall Street figured out who would win and it bet on it. Not necessarily which candidate would win but the uncertainty of who would win was the issue.

 

Okay, not sure if you were up all night and watched stock futures but while we were all sleeping futures fell some 700 points on the Dow. Pundits predicted that if Trump won, stocks would crater and bond yields skyrocket. Well, that didn’t exactly happen, either. The Dow was actually up by triple digits before noon. Bonds did in fact take a hit including mortgage bonds but now it appears stocks and bonds are reacting in a more traditional fashion. When stocks do well, bonds do not and vice versa.

But what is predictable is investing in private notes secured by real estate. Such notes provide a known return and the returns are paid monthly. There are no pundits predicting what the profits will be because they’re hard-wired into the note. We’ll see if stocks and bonds continue to act in an expected manner over the next few weeks, after all it’s only been one day so far but if this is in fact a precursor then we could see interest rates begin to rise on their own, without any action from the Fed.