Friday, May 12, 2017

Trump Rally Still An Illusion. It's All Capital Flows

I have long stated that the Trump rally is/was an illusion. International capital flows fleeing rising uncertainty and risk of 'unexpected' losses in Europe and Asia as a global crisis draws near have been driving the US dollar and US stocks higher since 2014. Smart money recognizes that pauses in the US dollar and US stock rally are related.  The majority, which includes large section of public opinion, still thinks Trump is responsible.  He's not.  The rally will continue even if they turn against him.

As long as capital continues to seek the safety of the United States, US stocks will rally. Higher stock prices, a relentless trend that few have called or see, will slowly turn a bearish majority into raving bulls that see nothing but higher prices.

Headline: Trader: Market has already decided that White House was...



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