By: Kent Engelke | Capitol Securities
Wow! Life is stranger than fiction where few could have written the script of the last 18 months. In my view President Trump put to rest any thoughts that he was not a populist. The President attacked the Establishment, defined as the elected pols and globalists. A gunless revolution has occurred in this peaceful transition of power, a transition I think few have not yet grasped its magnitude.
How will today’s Administrative state look tomorrow? Has “The Power” been returned back To the People? Perhaps the only certainty is that those in power will fight tooth and nail to protect their proverbial sandbox.
The success of the Trump Presidency will have a large impact on the markets. If he is successful, history will regard him as one of the greatest Presidents that restored the Teddy Roosevelt mantra of American Exceptionalism to the bane of the globalists and elitists, where Main Street vastly out performs Wall Street.
Change is feared but I will also write no change is ever linear.
Markets were little changed following Trump’s fiery speech that promised to upend the political establishment.
What will happen this week? Will Trump disappoint his supporters or will the Establishment be hit with shock and awe?
The economic calendar consists of various housing and manufacturing statistics and the initial release of fourth quarter GDP. Earning season also accelerates, a season that to date has been overshadowed by the Inauguration.
Last night the foreign markets were down. London was down 0.52%, Paris down 036%, and Frankfurt down 0.41%. China was up 0.44%, Japan down 1.29% and Hang Sang up 0.06%.
The Dow should open nominally lower as the markets are fearful that protectionism will increase and the Establishment is no longer protected. Moreover there is a surge of earning releases. Profits are expected to rise by 4.4% for the period and 12% in 2017. The 10-year is up 2/32 to yield 2.46%.