Do they think we’re all idiots and do not have access to the internet? How, with a straight face, can Citi issue a report saying that Trump is now a bullish thing for stocks — when in fact they’ve been warning us that he was going to ruin an otherwise harmonious melt up under democratic leaders?
Before the election, 11/4/16
“A Trump win risks slower growth or recession if trade is restricted and fiscal expansion plans curtailed. Uncertainty alone could hit the economy. Global growth will also be impacted if uncertainty rises, U.S. growth is hit and U.S. financial conditions tighten.”
“If Donald Trump were to win, that outcome would have been unexpected and thereby may cause a jump in the equity risk premium with negative P/E (price –to-earnings) multiple repercussions. We think a Trump victory could spark a 3-5 percent setback in the S&P 500,” summarizes the Citi note.
Today.
“Fiscal easing could be exactly what the U.S. and global economy needs right now, thus lifting real growth expectations but also inflation expectations,” the strategists wrote in a note to clients. “The prospect of stronger nominal growth should bode well for earnings, though we highlight how higher bond yields and rich US equity valuations as a starting point, constrain our optimism.”
While stocks will benefit more from Trump’s policy, investors should avoid emerging markets, Citigroup said, reversing its stance to favor developed countries. The MSCI Emerging Markets Index has slumped 5.5 percent for the biggest three-day decline since August 2015.
“Valuations remain attractive in most emerging market assets, equities included, but economic fragilities remain and the improving second derivative of growth may falter if local currency weakens,” the strategists wrote. “We can’t help but feel a stronger U.S. dollar could dramatically hamper investor flows and, as a corollary, credit and economic growth.”
Citigroup didn’t specify the percentage of money investors should earmark to each asset.
In other words, they were shilling hard for Hillary and were trying to assuage Wall Street to vote for her, otherwise, she might kill them or have their bonuses taken away. But now that Trump won the election, the same shills are trying to suck up to Trump by telling their clients that he’s gonna be the best thing since sliced bread for markets. Moreover, he’s precisely what the market needs!
What about your clients Citi? Do you even care about giving them honest advice any more, or are you just interested in collecting fees and spreading your brand of crony capitalism around the globe?
UPDATE: Apparently, JP Morgan is guilty of the same hypocrisy.
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— StockCats (@StockCats) November 14, 2016
I like to watch the Mets play at Shitty field when I visit.
In the meantime it looks like some action in the yen tonight as Japan growth is coming in higher than expected. This could be worth watching.
Group think at its finest. Last week if you asked anyone on the street if trump was going to win they would say no and if you asked what markets would do if he did, everyone said down. It’s gone from Trump causing a recession to being the next Ronald Reagan. Don’t get me wrong, I’m all for Trump and I hope he is able to succeed but I think expectations may be getting ahead of themselves and I’m not so sure a Trump presidency is going to be a boon to the entire market.
Pure
Brexit
II
The intranight forced-reversal election night said everything. Not even waiting the couple day gap following brexit to multi level ramp. CBs saying we’re still in control, we’re in control, we will force -valuation levels- higher when any good excuse presents itself, the inevitable inflection unwind at their time’s choosing
tonight’s already triple digit futures mostlikely confirm that
Would you expect any different from criminals?