By Chris Becker
Last week’s price action on risk markets can be characterised as total re-positioning by global risk managers as the reality of a Trump Presidency sets in. While this hasn’t even really started, with months of volatility ahead as nearly insane cabinet positions are confirmed and policies start to come down the Trumphole, its been pretty much locked in that inflation expectations are going up! Way up! So Treasuries and bonds have cratered while the USD has soared to the stars, as other havens like Yen, gold and Aussie dollar are sold off in response. For now, US stocks are loving the certainty, with almost all bourses reaching record highs, but its not as convincing elsewhere.
As is usual for Monday morning, I’ll step back and take a bigger picture view of each market, more important than ever…