By: Kent Engelke | Capitol Securities
Some are commenting there is a lack of direction in the markets as most are now looking for more details from the Trump Administration on promised tax cuts, reduced regulation and increased infrastructure spending.
For the immediacy, the averages will trade on the perception of policy success. I must write success will be defined differently regarding on what side of the aisle one sits.
To write the obvious, if The Trump Administration delivers 3.5% to 4% growth, a lot of today’s resistance would collapse. Vice versa, if growth collapses, Trump’s vision of economic nationalism would then collapse.
Regardless, yesterday’s globalist agenda is on life support and depending upon the success of Trump’s agenda, and the upcoming elections in both Germany and France, globalism may cease to exist in anything but name.
Wow! It is no wonder the Establishment, defined as anyone who is at the pinnacle of today’s power structure, is fighting so hard. Trillions are at risk in this potential change of global order to economic nationalism.
Yesterday was another quiet day as confusion is starting to grow over the direction of the young Trump administration…growth and regulatory repeal versus trade and immigration.
Last night the foreign markets were up. London was down 0.03%, Paris up 0.40% and Frankfurt up 0.05%. China was up 0.44%, Japan up 0.51% and Hang Sang up 0.66%.
The Dow should open flat. The 10-year is up 8/32 to yield 2.37%.