Last week we reported that in the aftermath of a report by the Canard Enchaine newspaper, French financial prosecutors had launched an informal probe into possible misuse of public funds by French presidential frontrunner Francois Fillon, who was accused of paying his wife around €500,000 over a period of ten years.
With the S&P500 ending January on the back foot, more pain may be in store for markets in February.
This is the observation of BofA's chief technician Stephen Suttmeyer, who provides several danger signals why bulls may want to be particularly cautious ahead of the coming months.
As he notes, the post-Presidential Election S&P 500 rally has done better than the post-Brexit rally, but there are warning signs moving into February just as there were coming off the mid-August post-Brexit S&P 500 peak.
A document from the Federal Elections Commission (FEC) indicates that Donald Trump took steps last week to outmaneuver nonprofit organizations, leaving them unable to officially campaign against him over the next few years of his Presidency.
As we begin the New Year, Brad Lamensdorf (CEO of Lamensdorf Market Timing Report) notes that historic indicators are showing that market expectations are extremely optimistic. Valuation and sentiment indicators, for instance, are rivaling record highs. From a contrarian perspective, these record-high indicators are warning signals to watch out. We take these warning signs very seriously.
By EconMatters
If Elections were held tomorrow, The Democrats would win the Presidential election and the Senate for sure, and maybe even the House of Representatives; it is going to be brutal for Republicans come Midterm Elections. Donald Trump is even hurting the business community with his policy initiatives.