Wednesday, March 29, 2017

Trump Economy Program will no longer "confidence"

Many investors worried about how great the Trump economy program, investors and market getting bored, The market's new skepticism about the Trump program comes at a sensitive time, as reported by CNBC Stock market volatility is at its lowest level since 1972, with only two daily moves of more than 1 percent in 2017, according to Convergex. this trading condition such quiet historically has been followed by periods of heightened volatility.

Go back to Trump future political risk, The political risks in the current climate only add to the feeling of some stormy times ahead.
"From a political perspective, we think the key issue is whether the president will encounter similar problems with his tax reform agenda, which is likely to be as complicated as health care reform, if not more so," Bob Doll, chief equity strategist at Nuveen Asset Management, said in a note Monday to clients. "If political turmoil is ongoing, higher risk, cyclical areas of the equity market would likely remain under pressure."

As recorded from Dow Jones index, The market is trading around 18.3 times forward 12-month earnings, about 2 percentage points above the historical norm. That's a level that reflects high enthusiasm for what's ahead, and could easily deflate should reality not reflect hope.

source: cnbc

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