Opinion: The honeymoon is over: Wall Street is finally taking Trump literally


Olde Hornet

Well-Known Member
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http://www.marketwatch.com/story/th...literally-2017-02-01?siteid=yhoof2&yptr=yahoo

By itself, the 230-point drop in the Dow Jones Industrial Average DJIA, +0.01% this week wasn’t earth shattering: 1% gains and losses happen all the time. But the clattering sound accompanying it wasn’t hard to diagnose: It was the sound of scales falling off of Wall Street’s eyes.

The market this week is dealing with the realization that President Donald Trump means all the things he says. He really is a protectionist, really does think America needs to be protected from the world both economically and physically. He really does make policy without much care or thought to get details right, he really has recruited an honest-to-God terrible team, and it actually is kind of dangerous.

For months, Wall Street strategists scrambled to justify a post-election rally most didn’t see coming by claiming Trump’s proposed tax cuts and vague infrastructure spending plans would goose growth, while discounting his vow to impose trade barriers as not really serious. Ten days into his presidency, the president has alienated our third-biggest trading partner in Mexico while having his spokesman float vague proposals about 20% taxes the president himself says might apply to all imports.
 
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