Idiot Alert: HSBC Analyst Thinks the Market is Being Held Back by Trump's Tweets
This is what you call living in a vacuum.
Herald van der Linde from HSBC believes the market’s hesitance to go up, uninterrupted of any pullbacks, is due to Donald Trump’s twitter account’s revelations. For the life of me, I cannot grasp how this high level retard deduced that annualized returns of 25-30% on the $SPY equates to a market struggling to find its footing. More to that point, the market is higher by more than 10% since election night — with numerous sectors (financials, commodities) higher by 30% during that time frame.
Donald Trump’s honeymoon with investors may come to a premature end as his frequent Twitter outbursts help kill off the initial burst of euphoria, according to Herald Van Der Linde, HSBC’s head of equity strategy for the Asia-Pacific region.
While leaders such as Japan’s Prime Minister Shinzo Abe and India’s Narendra Modi enjoyed comparatively lengthy periods of market strength after taking office, the U.S. optimism that welcomed Trump’s surprise victory in November shows signs of fizzling less than a month into his four-year term.
“You’re seeing the internal workings of the White House on Twitter, so you’re seeing the struggles going on in their Twitter feed,” Van Der Linde said in an interview at HSBC’s Hong Kong office. “When somebody comes in with a new agenda and the country seems to be moving in a new direction, that excites markets. With the Trump administration, we’re going to have a reality check and it might come sooner than you think.”
Investors are now adopting a wait-and-see approach to give Trump a chance to follow through on his post-election hype, but that will also be short-lived, Van Der Linde said. The HSBC strategist is one of a number of investors and analysts to question if the post-election rally was too fast and furious.
Classic care trolling.
The Trump rally was never sensical, as it was predicated upon the hopes and dreams of vast amounts of fiscal stimulus bills being passed by the GOP shilling congress — as well as regulatory reform and a commitment to lowering taxes. In spite of the fact that Trump’s policies threaten to menace China into a deleterious trade war, investors have given him the benefit of the doubt and have perpetuated a massive short squeeze for the ages.
With the S&P higher by ~3% for the year, and massive gains found in a sundry of sectors (nuclear +39%, aluminum +33%, gold +27%, copper +18%, hospitals +14%, semis +12%, autos +8% etc.) Mr. Herald Van Der Linde should open his eyes to the fact that markets have done nothing but exude optimism since the beginning of the year and pullbacks are a normal occurrence in any market — especially during one’s that shoot higher on the specter of an economic renaissance that is nothing more than a working theory.
Content originally generated at iBankCoin.com