US stockmarkets shrug off the mob's rampage through the US Capitol building
US stockmarkets seem more interested in the results of Senate elections in Georgia than on the lawless mob's raid on the country's Capitol building.

A “lawless mob” storms the US Capitol in a bid to overturn a democratic election, says Michael Mackenzie in the Financial Times. How did “cold-blooded markets” react? After a “brief wobble” they decided to set new all-time highs. Investors are more interested in Georgia, where Democrats last week gained control of the US Senate. That should give the Joe Biden administration more scope for further stimulus measures, helping the current “reflation” stock rally run hotter.
The expectation of new stimulus measures has continued to push up yields on ten-year treasury bonds – the benchmark of America’s borrowing costs – which this week hit a ten-month high. Signs that the US economy began to lag at the end of last year have given the stimulus doves another boost. The country shed a net 140,000 jobs in December, the first decline in seven months. The fall was driven by layoffs in the hospitality sector, which has been hit hard by the country’s post-Thanksgiving virus wave.
The latest jobs numbers follow weaker consumer spending and confidence data, economist Stephen Roach told CNBC. The “V-shaped recovery” is “in tatters” but traders don’t “seem to care”. They are betting that bad news will simply prompt the Federal Reserve to keep interest rates lower for longer. Thanks to loose money, markets feel they can ignore everything from a “double-dip” to “political insurrection”.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Markets are used to economic data, but they are a poor judge of a society’s democratic health, says Greg Ip in The Wall Street Journal. Venezuelan markets rallied for years as Hugo Chavez consolidated power. Only when inflation surged and the economy crashed did they realised how many key social institutions had been destroyed. Deep polarisation is emerging as a long-term threat to US economic vitality. Investors should pay attention.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019.
Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere.
He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful.
Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.
-
What is the 25x retirement rule and does it work?
The 25x retirement rule has been around for decades but many experts question if it is a suitable strategy
-
When is the self-assessment tax return deadline?
If you are self-employed, rent out a property or earn income from savings or investments, you may need to complete a self-assessment tax return. We run through the deadlines you need to know about
-
Are wealthy whisky enthusiasts leaving Britain?
Collectables Wealthy whisky enthusiasts are heading to tax-friendly countries such as Dubai, where there is more disposable income to spend on collectable luxuries like rare whisky.
-
'The rise and fall of Kodak is a lesson for the tech giants'
Opinion The long decline of Kodak – a once-dominant company – shows why no business is safe from disruption, says Matthew Lynn
-
8 of the best properties for sale with kitchen gardens
The best properties for sale with kitchen gardens – from a 17th-century timber-framed hall house in Norfolk, to an Arts & Crafts house in West Sussex designed by Charles Voysey with a garden by Gertrude Jekyll
-
Why investors can no longer trust traditional statistical indicators
Opinion The statistical indicators and data investors have relied on for decades are no longer fit for purpose. It's time to move on, says Helen Thomas
-
Investors rediscover the virtue of value investing over growth
Growth investing, betting on rapidly expanding companies, has proved successful since 2008. But now the other main investment style seems to be coming back into fashion.
-
8 of the best properties for sale with shooting estates
The best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
What we can learn from Britain’s "Dashing Dozen" stocks
Stocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
-
The most likely outcome of the AI boom is a big fall
Opinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth