It’s been a very busy week for financial markets. The Bank of England has raised rates for the first time in a decade, Donald Trump has elected a new Fed Chair and his long awaited tax reform has been unveiled.
It’s been a relatively calm start to trading on Monday but that isn’t likely to last long with the rest of the week packed full of major economic and political events that should ensure markets remain quite volatile.
Last week at this time we were scratching our heads about how a market can elevate in the face of such tragedy. Arthur Laffer probably put it best when he said on the surface money/markets have little to do with morality. But eventually, morality will catch up to the markets. Markets had a similar sentiment when it came to the hurricanes. Initially, markets were resilient when the hurricanes hit.