Weighing the Week Ahead: Is a Market-Friendly Policy Agenda in Peril?
Once again, the expected quiet summer week was instead filled with action. With analysts of all stripes analyzing every aspect of the changes in the Trump Administration, the financial punditry will do the same. Ignoring the politics and personalities, we are still left with a question that is important to investors:
Is a Market-Friendly Policy Agenda Now in Peril?
Last Week Recap
My notion that last week would be all about Korea and a possible correction was only half right. The Charlottesville events, the aftermath, and the President’s reactions took center stage. The turmoil once again offered a reason to sell. Once again this occurred despite a good week for economic data.
The Story in One Chart
I always start my personal review of the week by looking at this great chart from Doug Short via Jill Mislinski.
Doug has a special knack for pulling together all the relevant information. His charts save more than a thousand words! Read the entire post for several more charts providing long-term perspective, including the size and frequency of drawdowns.
The Silver Bullet
As I indicated recently I am moving the Silver Bullet award to a standalone feature, rather than an item in WTWA. I hope that readers and past winners, listed here, will help me in giving special recognition to those who help to keep data honest. As always, nominations are welcome!
Each week I break down events into good and bad. For our purposes, “good” has two components. The news must be market friendly and better than expectations. I avoid using my personal preferences in evaluating news – and you should, too!
The economic news last week was generally positive.