Donald Trump is super proud of the stock market rally, ok?
Trump tweets about the stock market so much that Deutsche Bank (literally) suggested on Wednesday that the leaked news about China’s alleged decision to review its policy on the purchase of U.S. Treasurys might have been an attempt on the part of the PBoC to show Trump that Beijing can create some bond market vol. if they want to on the way to tanking equities.
Of course as we and any number of others have pointed out on too many occasions to count, there’s a strong argument to be made that the 2017 rally had very little, if anything, to do with Donald Trump. After all, the “Trump trades” were either faded or else went sideways starting after the inauguration, the dollar had its worst year since 2003, and the yield curve is screaming “RECESSION!” at the top if its yield curve lungs.
Well if you needed an excuse to load up on hedges, you've got one now, because the President just literally said that the market will crash if he isn't given a clean bill of health tomorrow and yes, I am serious...