pre-tariff Top is In!
I'm getting the sense Wall st don't quite believe in his 1000% tariffs... (that every economist says would crash the economy).
S&P500 +2.4%, Russell; +5.6%! W.T.F?!
this must be the top..
Well you don't want to be in bonds when inflation strikes. Hence the sharp fall in treasury prices coinciding with the sharp rise in equities prices, as investors sold bonds and reinvested in stocks. Tariffs mean government-protected local monopolies with high margins, and what's not to like about that as a stockholder? Bondholders will be murdered (again) by the inflation that will come from bigger government deficits and a lack of Fed independence.
Money is moving off the sidelines and into risk-on mode after an uncontested election result. Soon as that's done, the TOP IS IN.
^VIX breaking down -20% today.
Fear is on the back burner.
Christmas will be a reality check.