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“Trump Trade 1.0” Is Over – Why It Will Take Some Time To Ship Version 2.0
zerohedge.com / by Nicholas Colas via ConvergEx / Mar 22, 2017 3:20 PM
The stock market may not be a casino, but 21 is the game of the day. That’s how many House votes the Republicans can afford to lose from their own party and still pass the American Health Care Act on Thursday. The cause of today’s sell-off is simple: there seems to be more like 25 “Nay” votes coming from the right wing of the GOP. For what it’s worth, our two best sources in DC both think the bill will pass on Thursday and today’s Beltway theatrics were just par for the course.
Regardless, equity investors know they aren’t positioned for even a faux-drama in DC. High valuations and (until today) low volume/low volatility melt up markets are always susceptible to shocks.
Our view is that today marked the official end of “Trump Trade 1.0” and it will take some time to ship Version 2.0. Washington, after all, does not work in New York minutes.
I’m not much of a gambler, but I know that “21” typically has better odds than most games at a casino. Providing you follow a few basic rules, you can get pretty close to 50/50 odds. Take a card when you have 16 or less… That kind of thing. And if you can find a casino where blackjack pays 2:1 instead of 3:2, all the better. (Here is a link with many of the common permutations of house rules and their effect on your odds, if you are curious)
The post “Trump Trade 1.0” Is Over – Why It Will Take Some Time To Ship Version 2.0 appeared first on Silver For The People.
Source: http://silveristhenew.com/2017/03/22/trump-trade-1-0-is-over-why-it-will-take-some-time-to-ship-version-2-0/
