Market rallying on Biden’s expected government spending: Expert
Ed Yardeni of Yardeni Research on investing tips and how much influence policies including stimulus have on the markets.
Investors are piling into the safety of U.S. government debt, pushing the yield on the 10-year Treasury note above 1% for the first time since March of 2020.
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10-YEAR YIELD HITS 1.047%
With the Democrats moving to full control of the Senate, along with the House, spending is likely on the rise.
“I think we are going to see a lot more government spending,” predicted Ed Yardeni of Yardeni Research.
Still, he said bond yields should be even higher if not for the “key politician or power“ in Washington; Fed Chair Jerome Powell, who will keep liquidity flowing.
“The market is looking ahead and saying no matter what happens we are not going to get a recession in 2021, maybe 2022 but not this year” he added