The Trump And Powell Puts Vs. Reality

The Trump And Powell Puts Vs. Reality

Summary The stock market sits at the top of its 18-month trading range. The Trump and Powell puts are trying to push it higher. Fundamental realities are dragging it lower. I expect reality to be the ultimate winner. Looking for a portfolio of ideas like this one? Members of The Portfolio Architect get exclusive access to our model portfolio. Start your free trial today » The stock market has been in a wide trading range for the past 18 months, and it currently sits at the top end of that range at approximately 2900 on the S&P 500 index ( SPY ). The tug of war between bulls and bears, or what I see as the Trump and Powell puts versus reality, has come to another critical juncture. Will we break out to new all-time highs and establish a new elevated trading range for the next several years or has the bull market finally run its course? The Trump Put It’s no coincidence that the stock market peaked each time President Trump escalated trade tensions with his tariff policies. The initial tariffs that were placed on washing machines and solar panels coincided with the market peak in January 2018. It peaked again in September when Trump placed a 10% tariff on $200 billion of Chinese goods. The third escalation occurred as the market hit all-time highs when Trump raised the tariff from 10% to 25%. Stock market performance is very important to President Trump, as it has performed well […]

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