The Trump Trade Is Dead—What Now?

My latest from The Observer:

Yesterday, the Dow Jones Industrial Average dropped for the eighth day in a row. For the venerable index, this is its longest losing streak since 2011. The Dow is currently on pace for its worst month since January 2016.

So does this portend bad times? Has President Trump finally pushed the economy off the cliff?

Doubtful. Instead of witnessing a new bear market, what we’re really seeing is the implosion of the “Trump Trade.” This was the furious—and largely unexpected—rally that took hold of the U.S. market after President Trump’s surprise victory. It was the unexpected outcome of a still-less expected event.

Turn back the clocks to election night where, at one point, the Dow futures were down 862 points. That’s how much global markets freaked out over a Trump administration. But Doomsday Day, alas, was a no-show. Cooler heads prevailed and in the following day’s trading, stocks rallied. The Dow closed higher by 257 points. From there, the Dow went on to add more than 2,500 points in less than four months.

Read the rest at The Observer.

Posted by on March 28th, 2017 at 1:33 pm

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