A post-election market sell-off is bringing with it opportunity. A frequently discussed narrative by analysts in the wake of a Trump victory on Tuesday night was that an initially sharp decline in stocks would result in the chance to buy the dip. But the window for such a trade had closed while many were still sleeping and long before the markets had opened for trading on Wednesday morning. But the same cannot be said for the U.S. Treasury market. After initially rallying strongly during the overnight hours after the election, Treasury yields were sent soaring higher and prices sharply lower throughout the trading day on Wednesday. While the magnitude of these declines was certainly unsettling, it has opened up an attractive buying opportunity for fixed income investors.
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