The European debt crisis explained

In the event of a non-resolution, market reactions could continue to exude extraordinary volatility with very rapid moves in short-term rates and sharp drawdowns in equities, commodities, and other risk assets.

Yesterday it was the Harris Trade but today it’s the Trump trade as stocks attempt to bounce back from last week’s selloff by using any lever they can pull. But from a probability perspective, election odds haven’t changed much, with Trump still expected to handily become 47

Although the environment for risk assets remains largely attractive, early gains from achieving the soft landing are likely in the rearview mirror for investors. It’s going to get tougher from here. The increasing likelihood of a Fed monetary policy mistake, stubborn inflation, disappointing earnings results, toppling over the US fiscal cliff, rising geopolitical tensions, and contentious elections all pose serious risks to the rally.