A protectionist threat is gone. But economic nationalism has uses, and he’s still a wild card.
Don Luskin of Trend Macrolytics wrote to clients this morning about the aftermath of Charlottesville: "We think it’s a clinical case of mass hysteria – and one of the strangest we’ve ever seen. It’s not about the event itself. It’s about President Donald Trump’s reaction to the event, because he is the most famous and fascinating man who has ever lived, and what we’ve called the Trump Infamy Ecosystem profits from exploiting that strange fact. And it’s not even about whether Trump is a racist.
Disgust at a few neo-Nazi animals may drive a referendum on rebirth of “animal spirits.”
"Don't let the milestones cause you to miss the simple underlying story: corporate earnings are at all-time highs. So stocks are at all-time highs," says Donald Luskin, chief investment officer at TrendMacro in Chicago. That's how it is supposed to work, he adds.
The S&P 500 — and not the Dow — is also the performance benchmark that money managers are compared against, adds Don Luskin, chief investment officer at TrendMacro. “A pro is only interested in what benchmark he is trying to beat,” Luskin says.
Adds Luskin: “Retail investors who still think about the Dow do so out of nostalgic habit. But investors who make up the vast majority of trading nowadays look at more sophisticated indexes that are better constructed and more diversified.”