For months, we have obsessed over the strength of equity markets and the continuous daily record highs. However, now the other side of the story is starting to gain traction, the decline of the U.S. dollar. It’s becoming just as much a hallmark of the Trump presidency as the equity market rally.
We began last week by wishing everyone the obligatory Happy New Year. And as it turned out, it has already been very happy for the U.S. equities bulls. This is also true for their international counterparts, even if politically challenged Germany is lagging a bit.
T’was the energy report before Christmas and Trump’s tax cut passed through the house, not one Democrat voted "yes," they just sat there and groused. The hedge-funds stuffed political stockings with care in hopes that the carried interest loophole still would be there. The Democrats wanted to tear the bill into shreds--it’s just a tax cut for the rich--and that was all that was said.