Wall St eyes new high while the rest of the world watches
The US S&P500 index (#SP500) is less than 1% away from making new highs, and investors don’t seem to care at all about the apparently concerted attempts of the US Deep State to find excuses to attack the President. Trump had a tough day with a verdict against his former campaign chairman, Paul Manafort, on charges that relate to historic tax issues, and with former lawyer & fixer Michael Cohen apparently ready to sign a blank confession if it gets him out of jail. These issues are so far removed from the remit of the ‘Russia” investigation it’s difficult to see them as anything but cynical financial waterboarding of Trump’s associates in order to extort confessions that support their agenda. But should Investors care ? Well, yes they should. These events undermine the President, exactly as they were designed to. The S&P may reach a little higher but once it does we do not believe that a new wave of buyers will emerge. In fact, it’s all starting to look a little fragile, and having benefited from this years recovery after the New England Patriot-inspired post SuperBowl equity meltdown, now is the time to take your profits and sit back on your cash and observe how things play out from here.