Donald Trump Blinks and Markets Rally
Trump’s new statements lead to an equity rally and gold profit-taking…
Highlights
• Trump’s new statements lead to an equity rally and gold profit-taking…
• … but this is rhetoric not backed by substance or hard data
• S&P 500 volatility is a 3+ standard deviation event
• The U.S. consumer spending outlook appears bleak
Key Takeaways
• Volatility Indicates Fundamental Bear Market: Ride the roller-coaster. That is the investment advice for the time we are in. Yet another in the long list of headline- and announcement-driven sessions. Down nearly -1,000 points one day; up +1,000 points the next (for the Dow). An endless string of volatility in both directions, which is a tough environment that only happens in fundamental bear markets.
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