By: Kent Engelke | Capitol Securities
How will the markets interpret the President’s remarks? Yesterday’s trading was one of caution with many asking can the President remotely accomplish any of his proposals especially in today’s hyper polarized environment.
I ask a different question. Is today really different than the polarization faced at other major turning points? Is the only difference that of social media, the news source for about 68% of society according to Facebook?
I vaguely recall the riots of the late 1960’s and early 1970’s and the animosity of that time, an animosity and bitterness discussed in my high school years of the mid to late 1970’s. Generally speaking, society has been rather quiet.
Today is more vitriolic than yesterday, but perhaps not as much as it was a generation ago.
Last night the foreign markets were up. London was up 1.14%, Paris was up 1.68% and Frankfurt was up 1.41%. China was up 0.16%, Japan was up 1.44% and Hang Sang was up 0.15%.
The Dow should open considerably higher on the tone of the President’s speech. Fed fund futures contracts are now suggesting over a 80% chance of a March increase. The 10-year is off 10/32 to yield 2.44%.