“The trouble is that as best as one can glean from what is out there, the tax legislation the Trump administration is working towards is more opposed to, than in line with, the spirit of the 1986 act.”
Seemingly unwilling to risk any further damage to his already low approval ratings, Trump ultimately
The bottom line is that between another powerful hurricane approaching the U.S. mainland, U.S. markets catching up with their global counterparts in terms of pricing in North Korea after the long weekend, the DACA decision which portends more bickering in Washington, and the looming debt ceiling debate (with the specter of a technical default showing up in today’s decidedly poor 4-week bill auction), it was death by a thousand cuts.
“Sure, they’re unlikely to seek shelter in Bitcoin and other cryptocurrencies just yet, not even Millennials. But they may well prefer a haven basket that includes more”…
But again, part of the story here is that gold could get some of the haven flows that would normally go to the yen. Because if this gets bad – and reports that Japan is preparing plans to evacuate 60,000 citizens living in or visiting South Korea suggest it might – then investors will likely shun the yen in favor of bullion and the franc (because as far as we know, Kim isn’t firing missiles at Switzerland).Â
To be sure, whatever you thought was going to dominate the news flow in the week ahead is probably going to take a backseat to North Korea, for obvious reasons.Â
But North Korea isn’t the only thing on traders’ minds this week. Not by a long shot.
If you were following along last week, you know that more than a few commentators
If you’re reading this, you’re probably in the investment industry, or at least have an interest in financial markets. If you’re in the investment industry or in the financial markets, you like to win. So you’re not going to like my answer.
We play. And we lose.
One of the defining characteristics of the ongoing risk rally over the past 14 months
That’s all fine and good and we wish anyone who’s still in this trade the best, but…
“But I have to say, the breadth of the consensus makes we wonder.”
“Given how negative sentiment on the political outlook has become, it’s feasible this sell-off in the 10-year could originate with a positive surprise from the policy process.”
“I am fully committed to working with XIV to get. This. Job. Done.”
“I only care what he means to the markets, and there is no doubt that although he views himself as quite the stock market whisperer, the reality is that American stocks are stinking compared to the rest of the world.”
Although I can’t imagine why…
The situation is so surreal that reality is now its own joke.
“What a bunch of superstitious hogwash.”
Your refund will be escaping this death trap with your life…
“Frankly, if they won’t or, more likely, can’t tell us what they are planning to do, they should take a pass and stick to their economics and orthodoxies.”
“…leaders have moved from being appalled and alarmed by the Trump administration to being appalled and bemused.”
Ok, I don’t know how much figurative “stock” you put in Mitch McConnell’s Monday promise that
“It also makes us inexorably prone to affectation. We must add our own signature, that thing that distinguishes us or our product; the figurative chili-powder-in-the-meth of whatever our form of productive output happens to be.”
“One of the most dangerous things in trading is to confuse what one thinks ‘should’ happen with the forecast of what ‘will’ happen.”
“What are you most concerned about over the next three months?”
“But it just feels like investors are in the mood for a placid day. It’s August and we’re going to have to keep paying attention right up to Friday evening, leaving little appetite today for angst and mayhem.”
“There are roads which must not be followed, armies which must be not attacked, towns which must not be besieged, positions which must not be contested…†– Sun Tze, The Art of War
“As summer comes to an end, and investment committees meet in early September, I don’t see how at the margin, America doesn’t get a downgrade from asset allocators throughout the world. The simple fact is that the much hyped Trump optimism has been sorely misplaced.”
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