US equities continue to set record highs, while volatility has returned to ultra-low levels

US equities continue to set record highs, while volatility has returned to ultra-low levels. The craziness of October has seemingly abated and investors apparently expect a calm last couple months of 2014. The market is clearly not concerned about the Republicans winning Congress. The fact is, the GOP isn't likely to make any waves while Obama is president. The new Congress is going to want to show it can function effectively ahead of the 2016 election. As such, there will be no debt ceiling/government closure issues this time around. There also won't likely be any changes to the ACA (Obamacare), as the health industry is likely loving the 10 million additional people with health insurance. There may be some headway made on the corporate tax structure, but it's more likely to help businesses in the US than not. All in all, it's easy to see why investors are content with US stocks right now. At the moment, most significant risk concerns are overseas.