The best place to start this quarterly is probably where we left off with our year-end comments.
The market’s focus remains on President Trump and what he can accomplish. At year-end, we made two points.
First, there were a lot of things that had already changed in the market before Trump’s election such as the following:
1. Interest rates had bottomed;
2. The economy was improving;
3. U.S. fiscal policy had turned from austerity to stimulus;
4. Inflation was showing signs of picking up.
Second, his platform not only accentuated these trends but added two more.
1. Plans for deregulation;
2. A dose of optimism.