THE FIRST DEGREE VIEW



Who loves ya Donald?

Stephen Fisher - Thursday, May 18, 2017
As the Global press corps and the US Democrats gloat over President Trump's travails this week, one would think that 'the Donald' has lost the confidence of everybody in the world.  The accusation that the President attempted to pervert the course of justice in a conversation with the former FBI chief Comey has raised the prospect of impeachment - if successful, Trump would be "... out of the suite and on the street."

But while the Washington elite don't like him, the Global Markets have a different view.  The Bloomberg grab shows the performance of the US S&P 500 over the last two trading days.  The significant drop from Tuesday to Wednesday corresponds to the news of Trump's potential impeachable action.  Similar pictures can be seen in the currency market and the flight to quality trade benefiting the US Treasury market.


The markets clearly value Trump over and above the Republican party and the usual array of Washington lawmakers.  I say this because, were Trump actually forced to step down as President, Vice-President Pence would take over and the Republicans would continue to hold a majority in both Houses of Congress.  Everything would be the same except for Donald Trump.

This is telling and is a fact that the press corps prefer not to mention.  Trump is tagged by the markets as someone who has the will and ability to effectively drive change in the US practice of Government.  Impeach him and that institution reverts to its old ways.

Who loves ya Donald?  The markets love ya.

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We all use our spare time differently - some of us sail, some of us read and some of us spend just a little too much time working out whether that South Australian Shiraz really did deserve a gold medal

 

And then there are those of us who spend their spare time thinking about the better application of monetary policy, about Central Bank intervention risk and, of course, about Greece

 

Meet Fish, our CIO, who is almost solely responsible for keeping First Degree's lawyers constantly on standby, with his alternative (and just the right side of libelous, according to those lawyers) view of what those in power are mucking up

 

If you like what he writes, we are happy to take you on as a Client, because those lawyers are pretty expensive!

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