Ep. 88B – A Headline Market

The Kapital News
The Kapital News
Ep. 88B - A Headline Market

Another trading day and another headline. Yesterday was a down day for the markets – nothing dramatic, but down nevertheless. Well, President Trump can’t have that and so we’re back on the bandwagon with statements being made. Both the President himself and the Treasury Secretary, Steven Mnuchin were out earlier today giving interviews with Fox Business and CNBC, respectively, and discussing the US/China trade talks. Of course, the markets interpreted the statements and the headlines as a net-positive and thus stocks rallied early on. However, as has been discussed at length here at The Kapital News, how much longer can the boy cry wolf? How much longer until diminishing marginal returns kick in on the effectiveness of saying something “positive” about trade negotiations? Markets are supposed to find fair-value. This has been a near impossibility with all of the lever-pulling by central banks the world over and from statements and actions undertaken by President Trump and his administration. What will be tomorrow’s headlines?

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