This is kinda, sorta a throwaway post in the sense that if you don’t already know this, you probably shouldn’t be allowed to manage your own, let alone anyone else’s money.
Thanks to about 5 stocks, benchmarks are still hitting records, but if you take even a cursory look below the hood (i.e. at the sector/style level) it’s been readily apparent for months that investors have been fading the Trump trade aggressively.
But the really notable juxtapositions come when you chart stocks with the yield curve…
… or perhaps better yet, stocks with macro data (both hard and soft)…
Here’s BofAML’s straightforward assessment:
Equities [are] the last one standing.
But the 2s-10s is “transitory”.
Perhaps stocks’ ability to weather the first few months of Trump proves that they have reached a permanently high plateau and the smartest thing to do is to keep investing.