Monday, March 19, 2018

This Morning's Action

This morning's always-to-be-questioned headline says:
Dow falls 200 points on Trump's Twitter meltdown
While it's hard to argue against the notion that Washington has become a headwind for stocks, this morning's action in other markets (bond yields [interest rates] up, dollar mixed [up vs yen], gold flat) suggest that this morning's (at least early on) volatility is more about inflation and the Fed (per yesterday's post) than it is the latest from the Twitter feed.

Now, if the Twitter feed starts talking tariffs on China (as rumors predict), look for a different narrative from us on the market's present struggles.

We still maintain our view that the market's negative reactions to the latter are likely to ultimately quell those protectionist leanings...

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