Today Was A Good Day

Both stocks and bonds benefitted from good news across the earnings, macroeconomic, and geopolitical fronts today. Financial stocks jumped as big banks kicked off Q4 earnings season with better-than-expected results, and the S&P 500 rose 1.8%. Treasuries rallied, as December's CPI was a bit cooler than feared. And Israel and Hamas have agreed to a ceasefire after 15 long months of fighting.

We anticipated that Trump 2.0 would be positive for the geopolitical scene, despite the overwhelming chatter about tariffs upsetting global trade. On November 12, following Trump's electoral win, we wrote: "We believe Trump 2.0 represents a major regime change that’s bullish for the economy and stocks. We now expect a sooner end to current geopolitical crises and possibly some improvement in the fiscal situation..."