ever forward and twirling toward freedom

To “make Argentina a great power again”, he wants to reduce regulations, lower taxes and eliminate the central bank. His five mastiffs are named after economists, including Murray Rothbard, an anarcho-capitalist, and Milton Friedman, a more conventional one. A self-styled professor of tantric sex and one-time frontman of an obscure rock band, he claims not to have brushed his hair since he was 13, preferring to let “the invisible hand” do the work. Investors will watch to see if 20K continues to act as a major resistance level.Mr Milei won recognition as an eccentric guest on talk-shows, eventually becoming the country’s most interviewed economist on television and radio. Since the Dow hit 19,900 back on December 13 th, it has struggled to punch through 20K. However, we still do not know if this will continue once he gets sworn in as President this Friday (1/20).ĭow 20K or US Debt Hitting $20 trillion: We still have not hit either milestone but we could hit both sometime this week. Analysts believe his tweets will likely help determine policy for his administration. Investors will continue to watch Donald Trump’s twitter page as his tweets continue to impact individual stocks or FX. Trump Tweets: The president elect wasn’t short of tweets last week and he moved the pharmaceutical industry in a press conference after saying pharma companies ‘are getting away with murder’. Investors will also be listening to the inauguration speech for any policy hints for the next administration. Even though the protests will most likely be peaceful, should the rallies get out of hand, we could see the markets being affected negatively. Inauguration Day: Protests are planned around the country for Inauguration Day on Friday (1/20).

Should CPI come in stronger than expected, it would signal that the consumer will be able to absorb last month’s interest rate. Additionally, I still expect the Fed speakers to not actually say Trump by name, way too much to ask.ĬPI: On Thursday (1/20), CPI is released. With the Dollar pulling back in recent weeks, investors will be expecting dovish comments. Even though the Fed is taking a wait and see approach as to potential fiscal policy under Trump, investors will have multiple occasions this week to hear hints as to the potential timing on interest rate hikes and the steepening of the yield curve. The Fed Chair will be blessing us with 2 speeches this week at various events. This may just be an anomaly with a small pool so far reporting (less than 7%).įOMC Members Speak: Three Fed members (William Dudley, Neel Kashkari and Patrick Harker) and Fed Chair (Janet Yellen) are scheduled to speak this week. 34% is very low as a typical quarter sees 59% of companies beat on revenue. According to Thomson Reuters I/B/E/S, of the 29 S&P 500 companies that have so far reported, 34% reported revenue above expectations while 72% have reported earnings above expectations. Traders can see individual stocks have huge price swings if a company’s earnings outpace or fall short of what the street expected. So much for Brexit being the end of the world for Briton.Įarnings: Earnings season picks up with 34 S&P 500 companies expected to report Q4 earnings this week. In the meantime, investors will be listening to a speech by Prime Minster Theresa May, scheduled for Tuesday (1/17), to see if this upward trajectory in the FTSE continues. However, much of that gain is due to the pound collapsing. Any hawkish comments would send the Euro higher amongst most currencies and send stocks lower.įTSE 100: On Monday (1/16) the FTSE 100 ended its streak of being up 14 trading sessions in a row. However, investors will be listening to potential changes to the types of bonds that may be purchased or the amounts.

At this juncture, investors are not expecting any changes to rates. Super Mario Speaks: On Thursday (1/19), ECB President Mario Draghi will announce the latest interest rate decision. Additionally, with a potential pull back possibly looming, look for gold to go higher as we saw it above $1200 last week. Investors will look to see if the US Dollar pulls back even more, pushing Treasury yields lower. In reaction, we have seen some markets pull back. The push back on the Dollar is likely a result of Fed members saying faster tightening may not happen.

We have also seen Treasury yields push lower. US Dollar Pull Back: In the previous week, we witnessed the US Dollar pull back after hitting a 14-year high. On the economic calendar, we have CPI, Building Permits and Philly Fed Manufacturing. Investors have a busy week ahead with an ECB Press Conference, a string of earnings and the inauguration of the next US President. Kudos to you (and Kang) if you get the reference. How many of you think Trump’s inauguration speech will consist of “Upward, not Forward, and always Twirling, Twirling, Twirling Towards Freedom.”

Ever forward and twirling toward freedom