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THE EW-NAVIGATOR - Re-Synchonisation!

​ In This Edition: With Donald Trump’s U.S. Presidential election victory still resonating throughout the financial markets, we take a look at the impact on the medium-term outlook of global stock markets – we revisit the ‘INFLATION-POP’ schematic first opined back in 2010-11 and more recently, the ‘RE-SYNCHRONISATION’ of Developed vs. Emerging markets that took place last February. Back in October ’14, at the Asian-Independent Research Association meeting in Hong Kong, Peter Goodburn laid out the theme of a 2^nd phase of the inflation-pop in the future, driven by a switch from central bank monetary stimulus to governmental fiscal stimulus that incorporates a massive plan for infrastructure spending. Now that Trump’s election manifesto includes exactly that, the intellectual guessing game for what might trigger this next phase of asset expansion is now apparent. There is a short-term obstacle though – some global stock markets have not quite synchronised and have underperformed since February – these indices are preparing for a double-digit percentage decline over the next several months. This is expected to drag the outperformers lower too, but as counter-trend corrective sequences – no harm in that. Once completed, ALL markets can then resume higher as the 2^nd phase of the ‘INFLATION –POP’ gets traction.