S&P

As RBC's head of cross asset-strategy, Charlie McElligott, asks rhetorically in a note on Friday morning, “THE” question that every investor (across all asset classes and strategies) is asking remains this: when is “the gig up” with this reflation trade?, as we know this violent pace can’t last forever, and price trajectories in same cases exceed even the most optimistic expectations of the future state of the world. 

Here is his answer:

A strategy of holding cash and buying any 5% dip in S&P until markets retrace the loss has outperformed the S&P consistently since 2014, but as BofAML warns, the changes in inflation market dynamics post-Trump may "handcuff" The Fed and pull a key support out of the market that helped create the "buy the dip" trade.

Today's epic melt up has left many traders, investors and market watchers speechless. But even prior to Wednesday's explosive move higher, the market was already in nosebleed territory.

Having been on the fence about an upside case for the S&P for the greater part of 2016, Goldman's chief equity strategist David Kostin finally threw in the towel earlier this week when, as we reported, Goldman raised its S&P price target from 2,100 (as of year end 2016) to 2,400 for mid-year 2017 on what it calls "Trump Hope" (as apparently does everyone else, see "The World Has Changed" - Average S&P Target Before Trump: 2,087; After Trump: 2,425"), which it then sees dipping to 2,300 by year-end 2017 on "Trump Fear."

For Bondholders, Big Tech shareholders, and Mexicans, here's the message...

Well if you thought November was turmoily, December is off to a turmoilier start...