Hedge Fund CIO: “What If The ‘Trump Earnings Surge’ Was Just An Illusion?”

Jon Alternative Media, Blogosphere, Economy

We bring readers this follow-up note to our earlier quote from the latest Weekend Notes by Eric Peters, CIO of One River Asset Management, as it provides a glimpse into the process of cognitive disappointment many other market participants may soon encounter, once the following key question is asked, and answered: ‘What happens if Trump can’t cut corporate taxes? What happens if we’ve recalibrated earnings to a future that was just an illusion?’
Swamped
‘How’s he going to cut taxes and make it revenue neutral?’ asked the CIO. ‘How’s he going to do massive infrastructure when we’re so deep in debt?’ he continued.
‘And why is the yield curve flattening? Why is loan demand declining? Why is consumer confidence at historic highs while retailer stocks are getting demolished?’ He paused to catch his breath.
And still panting asked, ‘What happens if he can’t cut corporate taxes? What happens if we’ve recalibrated earnings to a future that was just an illusion?’

This post was published at Zero Hedge on Apr 2, 2017.