Funny how election results suddenly saw a surge in euphoria around the US economy. The markets shrugged off the inauguration speech making it a “no-event”. The sentiment charts seem to all reflect the hope around Trump’s promise of making America great again, but the one way trade in US Dollar and equities seems to build in more hope than reality. Will January 20 be the turning point for the hope trade? Is it time to short the USD and US equities?
“The expectation for economic wonderfulness has been rampant, you only have to look at sentiment charts since Trump was elected to realise that it’s all on hope rather than reality, because reality has not changed fast enough to justify these spikes in sentiment.”
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