A Sense of Balance is slowly Returning
We are just starting to see some glimpses of what a more balanced economy will look like. The lopsided approach that has dominated the country since 1980, when Reagan started the supply side, trickle down movement, is ending, albeit with a cherry on the top of Trump’s Gold plated excesses.
I got a little busy yesterday and didn’t repost this chart from a month ago or so, a chart that shows the much talked about reflation is really 18 months old and is coming to a culmination as balance returns.
Two big things that are moving into focus are:
- Monopolies are going to be tackled, we will talk a lot more about this in coming months. Fang stocks will not like this.
- As we have said, Yellen at Treasury will not be a funny money booster, she is a balancer. Stock price multiples will see some adjustment.
But we do have one more big item to live through over the next month, one last attempt at overturning the election. It has the potential of being quite dramatic and market moving on January 6th. Stay tuned for Trump and Flynn with a Martial Law attempt.
And watch the dollar closely. In spite of everybody trying to bury it, it has a real potential to be making a major bottom.