The Almighty Dollar – Revisited

Donald Trump is elected President of the United States of America last year on a populist platform and the dollar($) takes off like it’s nobody’s business on the sales pitch America is back in business with a true business man at the helm. Right-wingers would point out Trump’s failures throughout the years in an effort to dispel this belief, however in fact his track record is impressive, with only four bankruptcies out of some 400 incorporations. Make no mistake folks, that’s an incredible feat with aggregate failure rates so much higher. So it’s no wonder both the American people and foreigners are optimistic about future prospects for the States with such a good manager now in charge, where he’s already embarrassing Obama before he’s even taken office on his way to creating the 25 million new jobs he has pledged.
Donald Trump is elected President of the United States of America last year on a populist platform and the dollar($) takes off like it’s nobody’s business on the platform America is back in business with a true business man at the helm. Right-wingers would point outTrump’s failures throughout the years in an effort to dispel this belief, however in fact his track record is impressive, with only four bankruptcies out of some 400 incorporations. Make no mistake folks, that’s an incredible feat with aggregate failure rates so much higher. So it’s no wonder both the American people and foreigners are optimistic about future prospects for the States with such a good manager now in charge, where he’s already embarrassing Obama before he’s even taken office on his way to creating the 25 million new jobs he has pledged.
So Donald Trump looks to be ‘good news’ for America with all of his energy and plans for the future, and the financial markets have been quick to reflect this belief – the bankers grabbed onto it right away as it suited their needs as an excuse to jam stocks higher into year-end. In this regard, it should be noted stocks have not rallied like this post election since the days of Hoover in 1928, adding some $2 trillion globally. (i.e. and we know what came after that.) What’s more, US debt credit risk spreads have also improved, however this has been at the expense of an approximate $2 trillion in fixed income losses globally, which likely hurt the average investor more than stock markets gains helped because asset heavy aging populations have been selling stocks in favor of bonds for years.

This post was published at GoldSeek on Tuesday, 17 January 2017.