Make My Inauguration Day

http://trendmacro.com/system/files/reports/20170123TrendMacroLuskin-DH.pdf
Donald L. Luskin
Monday, January 23, 2017
Trump embraces his risky role as an unstoppable force of change. Europe is next.
Strategic view: 

Trump’s aggressive inaugural speech initiates an uncompromising high-stakes game of brinksmanship. Perhaps now begins the moment of maximum uncertainty where we get a correction in stocks. Though he talked strongly about protectionism in his address, his first moves in office were all toward the devolution of federal power. At this time we think we’ll want to buy the dip if a correction sets in. Europe is next for the global pro-growth revolution, with elections in Netherlands and France that will move the EU further toward accountability and devolution of power. European stocks have performed as well as US stocks since the election in USD terms, even with the weak euro. The upcoming elections, relatively wide equity risk premia, and a likely weakening of USD all make European stocks especially attractive.

Section: 
TrendMacro