“They’ll Regret It” – Trader Warns Unquestioned “Trumpflation” Dogma Will Be Tested

Jon Alternative Media, Blogosphere, Economy, Politics

The vast majority of market participants are showing a surprising lack of flexibility and adaptability when it comes to the Trumpflation trade. As Bloomberg’s Mark Cudmore warns, they may regret it.
The dollar can still correct a chunk more without 2017 being a write off. The rush to rapidly buy the smallest dip, without proper consideration for the risks, is fraught with danger.
They may be correct, but the incredible conviction and seeming inability to add some nuance to the view is worrying. It’s verging on religious fervor, and shows a level of defensiveness that normally only comes from someone on the back-foot.
The Bloomberg Dollar Spot Index remains more than 5% above where it closed on election day. It can still fall another 2%, and remain comfortably in a medium-term uptrend.
Similarly, U. S. 10-year Treasury yields remain more than 50 basis points higher and can drop another 20 basis points without destroying a 2017 theme of rising rates.

This post was published at Zero Hedge on Jan 13, 2017.