Bill Blain: “Markets Are Waking Up To The Reality Of The Trump Hangover”
by Tyler Durden
ZeroHedge.com
Mar 22, 2017
As excerpeted from today’s edition of Bill Blain’s Morning Porridge
“Americans can always be counted upon to do the right thing.. after they have exhausted all other possibilities..”
So finally I got something right(ish) when I wrote about the imminent Trump Dump y’day.
It was hardly rocket science: the over-inflated expectations on his deliverables have been crystallised by the farce developing around the “repeal and replace” of Obamacare. Taken together with The Donald’s increasingly bizarre behaviour, the paranoid denials, the tweets and all the other issues, the realisation we’ve probably bought a pup is coming into a disappointing inevitability.
However, it’s not the end of the world. The sun will come up tomorrow.. But… Markets are waking up to the reality of the Trump hangover.. which is going to mean a renewed focus on all the complacencies we’ve let build up in recent months.
No surprise the mood has gone more than a little bit Risk Off.
My list of stuff we’ve been ignoring includes, but is not limited to: expectations and sentiment wibbles, overbought stocks, the long term consequences of QE, the rise of protectionism, Dollar wobbles, Credit bubbles, and rising inflation vs bond markets. Overlay that with the political issues: Europe (in all its multihued wonder), the UK and Brexit, China and Russia… More about all of these in coming days…
I spoke with my stock picking guru, Steve Previs, y’day and again this morning. (Steve wears special wizard robes and a pointy-hat to do his chartist stuff. We’ve built him a special darkened room emblazoned with star-charts and the bones of mythical beasts hidden in the bowels of the building.) He was telling me y’day: “we are in the early stage of a distribution top… don’t panic until we see a large and persistant rise in selling pressure.”
This morning he’s telling me that “large and persistent” selling pressure is here!
The Rest…HERE
