Last week, the Dow Jones Industrial Average finally climbed over the milestone of 20,000 after President Donald Trump signaled support for the Keystone Pipeline and froze new Obamacare regulations. My Forecast & Strategies subscribers full advantage by being 100% invested.
Then, the market retreated after President Trump imposed a temporary ban on refugees and immigrants from the Middle East and threatened to slap tariffs on various U.S. trading partners. Trade wars would not be good for the U.S. economy or financial markets. Trade represents 30% of the U.S. gross domestic product (GDP), and an average 60% of world GDP. And — note to populists — if Trump puts a 20% levy on autos, avocados and Corona beers coming from Mexico, it will be consumers like you paying for that wall, not Mexicans.
Is Donald Trump becoming the “imperial” president? The press refers to the president as POTUS, but maybe PONTIFF is a better acronym. The market is dancing to his every move.
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