King Dollar is at the highs for 2016, up nearly 1.1% v the euro for the session. Incredibly, investors have forgotten how dreadful a stronger dollar was for exporters earlier on in the year. Pressures are being applied to both gold and oil, but not copper.
The upside to all of this reflation is normalization of interest rates in Europe. Slowly but surely, the market is correcting the mistakes of central banks and yields are literally skyrocketing. Here in the US, our 10yr is at 2.19%, up from 1.75%, just one week ago.
While no one is paying attention to the credit markets because of the extravagant rally, let me remind readers that the rate of change in the bond market isn’t a good thing for credit. Effectively, the market is tightening, drastically, into an economy that is dreadful. There is optimism that Trump can turn things around and hope springs eternal. But, let’s be honest with one another now, it’s going to be very hard to unravel the yarn that Obama and his globalists devils have spun over the past 8 years.
Demand for dollars are going way up.
Credit it tightening, globally.
Over $1 trillion in fixed income losses have occurred since last week.
Chinese exports are way down, indicative of a weaker than the market is currently telling you economy.
WTI is in the low $40s and getting weaker with every tick higher in the dollar.
Lastly, the market isn’t taking Trump seriously, once again. He’s going to slap tariffs on China and build a god damned Mexican wall. The market has been wrong about Trump for over a year.
It’s gonna happen.
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Repatriation. Dollars will be in high demand as trump gives deal on repatriation. Fuck euro, fuck yen, fuck yuan fo sho and fuck every thing but king dollar and maybe putin fiat gets a lift.
I can see the Pound outperforming
Big business down. Small business and rust belt up! Anybody calculate the amount of steel made by rednecks needed for the fence the american hispanics will build to keepout new mexicans from coming over.
Think exit strategy from arc to king dollar.
Dollar has been consolidating for two years and now attempting to breakout. The target is 120 continuation from 80 with 101 as midbreak level.
Trump the savior, he will bring back the factories and all the angry morons that have been left behind will happily sit at the conveyer belt and screw together iphones and plastic toys. In your face China and Mexico! The American dream is back!
What might seem like monotonous nonsense to you would be good work for others. You need to get out more and look around at how many Americans work in service.
Yes good work, but please I¨m a proud American so please pay me accordingly.
And yes also, I don´t want to more than 5 dollars for my t-shirt
A nation that loses the ability to manufacture isn’t a nation at all.
We never lost the ability. Automation is what has cost many of the jobs, and those jobs will never return, unless Mr. Trump wants to start taxing robots per hour worked.
Abilty is lost when resources are gone. We allowed china to burn earth for 30 years.
What do we do about TLT fly? I know you won’t sell before the yield curve gets inverted but it’s a bit worrisome now.
8 years of Obama, you mean 50 years of the military industrial complex?
Fuck Jina, and Jina is fucked, but that has nothing to do with Trump. So far he has walked back his “platform” everyday for the last week. He is barely to the left of Bill Clinton now. I can’t believe that the people protesting in the US are not his own core who were fooled into voting for the douche.
The only “policy” he will see through IMHO is to allow the repatriation of offshore trillions, taking ten per cent for the US gov, but in the end only making those who already rich even richer. And thus Trump is more Wall Street’s pal than Main Street’s – and Main Street, as the case has been since Reagan, if not before, will be fucked over as usual.
Sad.
At least he will be gone in the next 15-24 months, impeached for the facts coming out of one of the 75 lawsuits against him, and undoubtedly many more to come.
Can’t be impeached for crimes committed prior to taking office unless it’s disqualifying (i.e. felony, in jail without bail,not a US citizen, etc)