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Most political scientists will agree the electorate undergoes a tectonic change every 35-40 years.  Perhaps a synonym for tectonic is generational.  Regardless as to whom wins the world is not coming to an end and all will learn how to navigate the Administration.

As stated several times I am not voting for Donald Trump but rather voting against Hillary Clinton for I believe she is representative of government going rogue, of becoming too powerful and too intrusive, where the rule of law does not apply.

I also believe some companies have become too powerful and have become too invested in the regulatory apparatus to foster their agenda.  In other words big government and big business become one of the same.

A controlling government is desirous of mega sized firms for such firms are easier to exert influence upon.  Herding cats—or the smaller companies—is too difficult for a government that believes it is omnipotent and omniscient over its electorate or to be sensationalist, subjects.

Is the above sensationalist comments?  No they are similar to ones echoed by Teddy Roosevelt 115 years ago as he was championing the belief of American Exceptionalism as too the importance of the individual and small business in creating a prosperous society.

For those who don’t recall the high school civics class Teddy Roosevelt was known as the “Trust Buster President,” deriding the all too powerful alliance between government and big business.

What will be the turnout?  The greatest turnout since 1960’s 62.7% turnout was 2008 as 58.23% of voting aged people (VAP) voted.   2012  54.87% of VAP casted a voted.

In 1996, only 49.0% VAP  voted.

When Teddy Roosevelt was reelected in 1904 65.2% of VAP voted.

Equites surged yesterday ending their longest consecutive days decline since 1980…nine.  The reason for the advance; the FBI director absolving Clinton from any wrong doing.  As widely known Clinton is viewed as more market friendly because she is the status quo.

The advance was narrowly based…the largest capitalized growth issues that are the favorites of ETFs and technology based trading.

If Donald Trump is elected, will I be writing in one that yesterday’s advance was the finale of the eight year advance of the mega capitalized issues?  Again quoting BlackRock’s Fink “The markets are no longer being bought for fundamental value but only bought on an indiscriminate basis valuing size over all other parameters.”

Last night the foreign markets were mixed.  London was up 0.08%, Paris down 0.11%, and Frankfurt down 0.15%.  China was up 0.46%, Japan down 0.03%,  and Hang Sang 0.47%.

The Dow should open nominally lower on election jitters.  The 10-year is flat 1.82%.

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Ken Engelke

Chief Economic Strategist Managing Director

The views expressed herein are those of Kent Engelke and do not necessarily reflect those of Capitol Securities Management. Any opinions expressed are statements of judgment on this date and are subject to certain risks and uncertainties which could cause actual results to differ materially from those currently anticipated or projected. Any future dividends, interest, yields and event dates listed may be subject to change. An investor cannot invest in an index, and its returns are not indicative of the performance of any specific investment. Past performance is not indicative of future results. This material is being provided for informational purposes only. Any information should not be deemed a recommendation to buy, hold or sell any security. Certain information has been obtained from third-party sources we consider reliable, but we do not guarantee that such information is accurate or complete. This report is not a complete description of the securities, markets, or developments referred to in this material and does not include all available data necessary for making an investment decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and you may incur a profit or loss regardless of strategy selected. There is no guarantee that the statements, opinions or forecasts provided herein will prove to be correct. If you would like to unsubscribe from this e-mail distribution, please reply to this e-mail and indicate that you wish to unsubscribe in your response.