Much going on the domestic and global front. The President laying out much new work related to taxes, Nafta, Etc. The growth prospects are improving slowly but surely. The markets have much to digest with each new administration.
Currencies The dollar showing a bit of strength today. The trend has been up. Corrections to be expected. The corrections should be treated as just that unless something changes drastically. The Euro and the Dollar traded briefly at parity on the board. I think this is possible again. It is the opinion that the dollar will gain relative to the commodity based currencies over the foreseeable future
Bonds It is my thought that the ling term highs are in in the bond market. The market now is digesting uncertainty and correcting to the upside. Is the 154 level the high ? remains to be seen. The market will watch and anticipate growth which will signal further gains in the rates. Watch the 30 vs the 10 and 5 yr
Energy – As mentioned the crude is well supplied. The US energy policy is production growth, which bodes well for the consumer. The cude trading to $48 may signal further weakness. The political makeup can at any time spark violent rallies.
Equities US strength equates to buying in the stock market. While the stock market is at high valuations and is due a reasonable correction at any point,this has proven fruitless for some time. Top pickers need to exercise caution and deep pockets.
Be Well