In last year’s market outlook for 2017, I anticipated a rise of around 11% in U.S. equities, in general, to place the S&P 500 Index at just above the 2400 level by the end of the year (my post was written on December 1, 2016, so my calculations and forecast hadn’t incorporated a further 80-point rally that occurred during that month until year-end).
In my post of November 26, 2016, I was projecting a rally in the SPX to around 2700 by the next U.S. Presidential election in 2020. Markets have certainly been much more robust this year than I anticipated, as this level has almost been hit already. It rallied to an all-time high of 2657.74 on November 30 and closed on December 1 at 2642.22. (more…)
Well, considering how the Republicans (a party which, even as a youngster, I considered myself a proud member of, but now believe they are disgusting, soulless, corrupt pigs) completely fucked over the 99%, one would think equities would jizz all over themselves. And they did (see green tint below). But the jizz evaporated as quickly as something-something-something to do with Mitch McConnell’s complete absence of a chin.
The big pop that took place because of the massive tax fraud being rammed up the middle class’ backside has, shall we say, lost its potency over in NASDAQ-land.
Long-term bond yields are rising this morning, and you will notice, the 2yr is rising more than the 30yr. So not only is this a boost for the ‘nominal yields rising’ Amigo, it is also a boost for the ‘yield curve flattening’ Amigo. The 3rd Amigo? Why, he is ‘stocks vs. gold’ and he is riding hard again this morning.