Friday, December 16, 2016

Financial markets freeze

With the exception of some givebacks that were obvious and a few gains that were justified, the equity markets in the U.S. were stable today.  "Stable" is not a word that comes to mind to many investors whose worry is palpable.  The issue is, "where is the safe move?'

Some see the President-elect as a boost to the economy.  Even among those who doubt that, it is the ruling thought for the moment.  Go with it incrementally the market is saying, and there are few sellers now.  Everyone just sits.  Buyers just pick off weak bids for good companies that are out of favor.  That overall picture is not leading to robust activity, even as the robo-traders keep volumes up.

Here, gains are so obvious over the last three years that there are few losses to take for tax season. That's a welcome problem.  It's also a vexing one.  It is a reason for a pause, and a reason to what...

 A Trump presidency could be market destroying.


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