With the Dow Jones just a handful of gamma imbalance rips away from 20,000, the CIO of One River Asset Management, Eric Peters, shares some critical perspective on the market's recent euphoric surge, going so far as to brand what is going on as America's "Massive Policy Error", the biggest in the past 50 years.
His thoughs are presented below, framed in his typical "anecdotal" way.
Anecdote
This morning Trump has confirmed his intention to nominate retired Marine General John Kelly to head the Department of Homeland Security, a pick that had been rumored for days. In a statement, Trump highlighted Kelly's experience in defending the homeland from threats of terrorism and said that he was the right person to "spearhead the urgent mission of stopping illegal immigration and securing our borders."
On Sunday morning, Trump reignited the diplomatic spat with China when during an interview with Chris Wallace on Fox News Sunday the President-elect said that his support for the "One China" policy which has underpinned U.S. behavior toward Taiwan since the 1970s, will hinge on cutting a better deal on trade, in other words it will be a "barter chip" to extract future concessions from Beijing.
In a Sunday interview with Chris Wallace, President elect Donald Trump did the unthinkable: he refused to cow tow to the One China policy, drawing a hard line in the sand with China that resulted in harsh rebuttals from both Chinese government officials and state run media.