Positioning for a Long-Term Cycle of Increased Risks

President-elect Trump’s landslide election has certainly activated the animal spirits in many markets as traders have been busy pricing in the expected impact of his anticipated new policies.  Stocks continue to slowly grind higher, making new all-time highs, albeit in a very unconvincing fashion.  The dollar is making progressively higher multi-month highs against most major currencies, and the US treasury market remains under pressure.  Bitcoin poked its nose above 99,300, effectively hitting my next upside target, and gold and silver are trying to reassert their uptrends a bit prematurely after having nasty corrective declines.

Traders are expecting the new administration’s policies to be supportive of further growth in the US, but highly inflationary.  There are many markets that are now highly stretched out, so we need to prepare ourselves for a tremendous amount of volatility over the coming months and years.  This volatility won’t only play out in the US markets, but the impact will be global.  Let’s discuss.