RINF

I think it's safe to say, last week more than lived up to expectations. We may never see a US election like it again. What is remarkable is how relaxed traders have been throughout.Many expect the central bank to announce further easing measures in December, once the election is resolved and with new economic projections to guide them.China Trade Balance and FX Reserves released tomorrow. Both may slow due to the long October holiday, but it will take a big downward surprise in exports to trip up the bullish China story on Monday morning.

After reducing equity risk in portfolios over the last few weeks, we suggested last week the "selling" was likely overdone.It was quite the reversal. The rally pushed the market back above the 50-dma and lower highs' previous downtrend. Such sets the market up for a retest of all-time highs next week.However, before you get all excited and go throwing your money into the market, you may want to step back and re-evaluate your risk.

We've grown accustomed to the "new normal": Stock market ebullience even as the country suffers through a distressing confluence of hardships.It is deeply disappointing to witness an election where seemingly everyone comes out of the process only further disillusioned.This is a critical juncture in our nation's history. Let's agree to disagree on many issues. Let's be civil.

The goldilocks election reaction, with stocks rising and inflation expectations declining, provides an opportunity to sell U.S. stocks and position for rising inflation in the ProShares Inflation Expectations ETF.The RINF tracks 30-year breakeven inflation expectations and offers all the upside potential from increased money printing with fewer downside risks in the event of contracting U.S. equity valuations.The current 1.7% SPX yield is minimal opportunity cost to protect against contracting valuations, particularly as dividend payments look set to decline from their record highs relative to GDP.

Within the various commodity sectors there are certain products that have outperformed others as the market recovered.Outperformance within groups is one of the keys to understanding the nature of commodity prices in relation to economic forecasts.Especially in the wake of changing central bank policy.

Peter co-founded AlphaOmega Advisors and was chief global market strategist at Cantor Fitzgerald for a decade.Peter is one of the few tv commentators worth listening to and doesn't have any agenda.Rate policy not working to spur inflation.The impact of low rates.

We're now only a few days from the most pivotal of elections.COVID cases here at home remained highly elevated all summer. And if U.S. infections now follow Europe's trajectory, our nation is facing a dark and challenging winter.The Fed could well be on the cusp of a historic predicament.

For FY 2020, the total deficit came in at $3.1 trillion, a record shortfall, especially compared to a red ink total of $984.4 billion for FY 2019.It was the surge in spending that accounted for 98% of the increase in the overall deficit, as total outlays exploded by more than $2.1 trillion.Looking ahead, additional fiscal stimulus does seem likely in FY 2021: It's the exact timing and magnitude that are unknown.