The “Trump trade” in U.S. stocks that was spurred by President Donald Trump’s November election has come and gone, according to Tony Dwyer, Canaccord Genuity Group Inc.’s chief market strategist.
The U.S. has recorded a trade deficit in every year since 1975. This is not surprising — America spends more than it saves. So, it must run a trade deficit, and this deficit is financed by means of a virtually unlimited U.S. line of credit with the rest of the world. Economies that save more than they spend and record corresponding trade surpluses ship funds to the U.S. to finance America’s insatiable spending.
Authored by 720Global's Michael Lebowitz via RealInvestmentAdvice.com,
“The individual investor should act consistently as an investor and not as a speculator.“ – Ben Graham.
We noted yesterday that the recent trend of increased volumes into Eurodollar future out-months was 'odd'...
But the sudden surge in interest in Eurodollar calls (vs puts) suggests more than just a few prop bets are being placed on the fact that The Fed does not hike rates in June.
In the past week, Goldman's warnings about an imminent market correction have been coming out on almost daily basis.