Here's What Trump Cannot Survive. [View all]

[louis c]

President* Trump has taken credit for the strong economy, which is just a residual effect of the Obama Administration. After all, no change in policy has occurred. But even in the best of circumstances, there is still a cyclical nature to the economy, and the large banks are warning of that downturn, just around the corner. Trump has burned his bridges on trust and will never be able to handle a negative GDP and job growth numbers, or a 20% correction in the Dow.

<snip>“These low macro and micro correlations confirm the idea that we’re in a late-cycle environment, and it’s no accident that the last time we saw readings this low was 2005-07,” Sheets wrote. He recommends boosting allocations to U.S. stocks while reducing holdings of corporate debt, where consumer consumption and energy is more heavily represented.<snip>

Link:
https://www.bloomberg.com/news/articles/2017-08-22/wall-street-banks-warn-winter-is-coming-as-business-cycle-peaks