Global markets sold off overnight, as political risks outweighed corporate earnings strength offshore.
Trump has continued to spark controversy, most recently with his orders around banning immigration from certain countries. A busy start to the Presidency, with Trump’s “executive order” strategy has increased uncertainty and risk aversion among investors. Investor concerns are that Trump may follow through with isolationist policies touted on the campaign trail, overshadowing the administrations pro-growth agenda.
As we have pointed out in the past, now that Trump has taken office and started to govern, his administration’s economic plans will become more clear. We would expect these dynamics to fully play out at least over the course of 2017, if not longer.
Once again, taking a bigger picture view, given the strong move higher in markets, we would be hesitant in broadly buying stocks at the current juncture and would not be surprised...
Stock Markets, Simplified.