The Weekly Track superlatives
- The Weekly Track – Superlatives by Bob Savage
http://track.com/articles/the-weekly-track-superlatives/
The week past will be known as the biggest surprise election outcome ever. Trump won “bigly.†The Trump victory stunned the global elite, the press, the pollsters and perhaps even the Donald himself. The US will remain a nation obsessed with itself – with its new economic nationalism led by a populist. This sends all other news and economic data out the window. Some will call this lunacy, others politics. The week ahead is unlikely to relent. The biggest “Supermoon†since 1948, which won’t be repeated again until 2034, will appear to the naked eye the moon 15% larger – a “bigly†event. But the forecast at least over New York and Washington is for rain. So goes the battle of man vs. nature and appropriately for those that chase markets, politicians versus economic trends. The world is searching for superlatives and in that we have plenty given the volatility of markets post-election. There are three key questions for the week ahead from markets – 1)
Can the US withstand the rapid rate move without seeing economic doubts – like a housing sector pullback, stock market rotation; 2) Can Emerging Markets withstand the rate moves and hold their currencies without a crisis – as we saw in January with China; 3) Will the BOJ and ECB be forced to act further on Quantitative Easing to counter the sharp move up in their own bond markets. We are at the extremes for global market confusion against domestic confidence. An inward looking US drives up fears that globalization unravels dragging down multilateralism in trade, diplomacy and business.