You know, there’s so much talk these days about how all of the “good stuff” in Trump’s policy agenda – tax reform, fiscal stimulus, etc. – is likely going to a take a while to push through Congress, let alone implement.
That’s lamentable because in the meantime, all the “bad stuff” – the Muslim ban travel restrictions, trade wars fair trade negotiations, etc. – seem to be moving along at warp speed.
As I wrote earlier today and outlined extensively in a post I hope will be published later this evening, this is bad for markets because investors and traders seem to have been operating on the assumption that the good sh*t would be moving along at at least the same speed as the bad sh*t..
That is, the entire reflation narrative kind of rested on the notion that the Trump administration would move immediately to push the envelope on growth friendly reform. Instead, the White House seems to be focused almost entirely on immigration and who is or isn’t screwing America on trade.
As quite a few strategists have noted of late, the market is just going to have to come to terms with the fact that the pro-growth agenda is in fact quite complicated and simply cannot be negotiated over night.
But really, I don’t see why everyone says it’s a complex process. I mean just look how simple it seems on paper…
(Goldman)
Well the good thing is the Street is very patient, they will definitely wait quietly while the infrastructure and tax cuts go through at the end of next year,