January 2017 Commentary

As I outlined in our December 2016 commentary, I believed a lot of good news would be priced in the market by the time Trump took office on January 20th. Thereafter, reality would set in – the impact of the rising US dollar, clarity into what policies the new President would (or would not) be able to deliver upon, and renewed focus on the potential risks around the globe. For example, Trump talking tough on China and Mexico while cooing softly with Russia. As of January 31st, we still have no idea how these theatrics will play out; hence, markets are signalling a move from “Animal Spirits” to “wait and see mode”.

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