The following is the opening segment of this week’s edition of Notes From the Rabbit Hole, NFTRH 437. While I think several proposed Trump administration policies would have positive down the road effects for corporate America and the asset ownership class, the administration will have to survive intact in order to implement them. This is one erratic and shall we say, fluid, situation and this is not a leader who inspires confidence, speaking personally at least.
Peak Trump
Last week we reduced the charting in favor of increased talking. That was because I had some things to say about the at-risk gold sector and its incomplete macro fundamentals.
There was also a lot to say about stock market sectors that would be favored or avoided if the long-term bond yield environment continued to shift to declining (bonds bouncing). Last week dealt a blow (in the form of Trump’s triumphant speech to congress and unusually aggressive Fed jawboning) to bonds, but did not break the play.