It looks like the market might finally be realizing that politics matter.
Because just as this tweet hit…
…we got an immediate risk-off move across assets.
- S&P 500 DIPS TO LOWS, GOLD FUTURES SPIKE AFTER TRUMP COMMENTS
Here’s stocks, the dollar, and yields (in descending order):
And here’s gold and the VIX…
Just to be clear: this is what everyone was afraid of. Trump can’t get out of his own way.
And while initially that only impeded progress on his growth-friendly agenda, his erratic behavior is now deep-sixing the agenda altogether.
Recall what Bloomberg’s Ye Xie said on Tuesday evening:
Trump‘s press conference on infrastructure quickly swerved to him launching new controversial comments on that deadly confrontation between protesters in Virginia. It’s a typical pattern of his political woes stealing the limelight from the economic agenda.
More to come…