Investors Revisit the 2016 Playbook
But Will It Last?
Highlights
Valuations, interest rates, and fiscal health pose as potential constraints to the 2016 playbook
Central banks take back center stage (Fed and BoE on deck today)
Global automakers’ results are a stark reminder of the weak demand for big-ticket purchases
China’s exports jump, but is it a front-running of potential tariffs?
Key Takeaways
Post-Election Market RallyÂ
Investors quickly went to the 2016 playbook, which was the last time the Trump-led GOP pulled off a clean sweep. The risk-on trade is in full swing — equities are ripping and safe-havens like gold and especially Treasuries got smoked. But how long will this playbook last? The runway looks to be shorter this time around (valuations, interest rates, and fiscal health look to be constraints).
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