Technically Speaking | February 2017

Well the equity markets are off and running. Ever since the traders realized they may have voted in a new sheriff, investors have voted with their cash and the indexes have responded.

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Above is the S&P 500 which is shouting buy me. Below is the European STOXX 600 which also is responding to the Trump news. Even if the media doesn’t approve, the investors do.

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The Federal Reserve remains upon the path of slowly increasing interest rates. The past 2 years has seen increases in overnight rates of two 0.25% which is hardly a scare tactic to the bond market. With unknown being the watchword for President Trump’s economic policies — both he and the Fed are following known patterns.

It does remain to be seen whether the Trump-house will tackle the ‘true’ unemployment rate or not. If they begin to shake some of these skeletons to see what sticks to the bones we may be in for some darker days before a real dawn is realized.

Again, as the election news was absorbed the US dollar strengthened up to the end of the year. Weakness began appearing in early January and has been continuing as some of the policies Trump promised are actually being acted upon.

We do think both the trade/border, infastructure and financial policies will be positive for our market. Along with tearing out some of the expenses of Obamacare and potentially lower tax rates should provide investors opportunities and spenders relief.

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So we pause, 3 months after a earthshaking election and realize there is more to come. We have only had 15 days of Trump in office. We are glad they got the drapes they wanted but it does seem to us he is moving fast toward fulfilling those first 100 days. While we didn’t pay any attention to “The Apprentice” maybe we need to be watching the video games, reality TV and Monday night football to see where the next major candidate is currently getting exposure.

The Dow will most likely trade above the 20,000 mark as all these factors provide investors with a place to put their money.

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If we can be of assistance, do not hesitate to contact us.

John Ford, CFP(TM)
817 831-6133

Gloria Bohannon
940 723-5565