The Bulls and Bears Cast Their Votes

Like the electorate, the markets are sizing up the presidential candidates

VOTERS DON'T GO TO THE POLLS UNTIL NEXT WEEK, but Wall Street is already casting its ballots. Anticipating a changing of the guard and a new economic game plan focusing on growth rather than fighting inflation, the stock market has largely rallied behind Governor Bill Clinton. But in the bond market, the Democratic ticket is receiving a vote of no confidence. Since Labor Day, yields on 30-year Treasury bonds have soared 41 basis points, to 7.61%. Yields jumped 9 points last week. Bond traders are worried that Clinton's economic program will be inflationary and lead to larger budget deficits, higher interest...

Want the full story?

Subscribe Now


Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!