It should have been the best week of the Presidency for New York’s favorite son. After staying on script at his address to a joint session of Congress, you could sense that the narrative was shifting from “he is trying to do too much” to “how great it would be if he can get just one half of his agenda done.”
While the majority of the financial world has its focus on every move in Washington D.C., there is another very important development happening in the German bond market.
While politics and the new government's agenda is still very much in the news, investor interest last week shifted to the bigger picture.
Market psychology was tested last week. Early in the week, the nightly news flow out of Washington D.C. was so concerning, that it felt as if the markets could have easily opened limit down the next morning.
You knew the protectionist measures would come. You just didn’t know how soon they would be implemented and how disruptive they could be. A border trade war with Mexico could mean some very expensive items in the produce aisles offset by a glut of beef, pigs and cheese in the U.S.
Crowd sizes, Alternative Facts, The Bee Movie, Madonna, Tax Returns, Twitter, Facebook, 24-hour news channels and Saturday Night Live. If you enjoy political entertainment, then now is your time.
Time for the new White House and Congress to put pen to paper. While the equity markets have sustained their high levels, intra-day volatility in currencies, bonds and equities have surged as those markets attempt to react to every rumor and tweet out of Washington and Trump Tower.
2016 was a rather boring year for the markets. That is until the surprising November election results left Americans thinking “Now What?”
It was a big first week of 2017 for the weather and for the U.S. markets. As temps dropped and snow hit nearly every state in the union, stocks only wanted to move into the clouds. The numbers showed that it was a different type of week with growth, biotech and FANG stocks leading the week one charge.
So much for the Santa Claus rally. The red sled never even left the garage. Why were the last two weeks of 2016 a dud?