Trump is Proof
Historically, it’s been thought that markets hate uncertainty. It’s proven to be the case for hundreds of years…until now.
With the current administration in the White House, you never know what is coming next and some of the developments are so far out of left field that they have become routine. At least with the past few administrations, we kind of knew what they were doing. (They weren’t doing anything!) At this moment, President Trump could be sitting down to a nice breakfast while watching TV and Tweeting (he doesn’t start work until 11 AM). Or he could be staring down his adversary from North Korea, before an intense game of Connect Four!
There is little doubt that the popularity of programmed computer trading has helped to take some of he emotion out of trading. That has proven to keep the market in a range and the constant dip buying has made people more comfortable buying into weakness. Eventually, an event will come along to prove these dip buyers wrong. What will that event be? Hmmm. I’m not certain, and I’m ok with the uncertainty. Now, do you want to be the yellow or red checkers?