Wednesday, May 17, 2017

Short Term Trends Do Not Reverse Flight of Safety Capital Flows

Global market tumble as media focuses on controversies rather than better representation of the public. While Trump was put into office to drain the swamp, his choices on how to best accomplish that weakened the Administration in the eyes of the public. Public perception, even if influenced by propaganda-like media coverage, is the driver of public policy. Economic and policy reforms are unlikely as long as controversies remain the focus. If inaction is the goal or outcome, the 2018 mid-term elections will likely prove influential.

Growing economic, political, and social uncertainty in Europe and the non-core economies will maintain flight of safety capital flows to the US. These drivers will support the dollar and US private assets despite on going consolidation or corrective phase since early March. The majority's focus on the short-term means few will be prepared when the cycle shifts in the second half of 2017.

Headline: GLOBAL MARKETS-Concerns over Trump dent stocks, dollar

LONDON, May 17 (Reuters) - Concern that U.S. President Donald Trump's reform agenda could be slowed down, and that Trump himself could even face the threat of impeachment, added to disappointing U.S. economic data on Wednesday to hit the dollar and spur a pullback from richly valued stocks.

Reports that Trump asked then-FBI Director James Comey to end a probe into his former national security adviser have raised questions over whether obstruction of justice charges could be laid against the president.



Market-driven money flow, trend, and intermarket analysis is provided by an Insights key.