Why Is the Market So Undecided?
Skerdian Meta • 2 min read
Since the new year began, the financial markets have been very uncertain and anxious. Of course, it has everything to do with Donald Trump and the new global political/economic environment that´s expected to change the current status quo we´ve seen for decades.
At first, the market was totally focused on the fiscal stimulus that´s supposed to be coming soon. That´s the reason the Buck enjoyed a very decent rally in the last two weeks of 2017.
However, we still have at least a few months to go until the fiscal stimulus and other major decisions turn into real policies and a lot more time until they start to show effects on the US economy. So, why all the nerves?
It´s true that the decisions taken so far have been second hand goods and not a game changer for the US, politically or economically. Nevertheless, the problem remains in the way these decisions have been taken.
So far the delivery has been sporadic, not properly timed and chaotic, to say the least. That´s what the market is worried about right now.
Everyone knows Trump´s intentions on major issues like the promised fiscal programme, Obamacare, tax reform, etc, but the problem remains in the implementation of these "reforms".
Judging by last week´s decisions, the market has formed an opinion that the delivery will likely be terrible. Even if you have the best intentions in the world, everything depends on how you turn these ideas into real actions. If you screw it up, the best idea will turn into your worst nightmare.
So, that´s the reason the market is jittery and the Buck can´t find some steady ground. Everyone is trying to figure out how good a president Trump can be. At the moment, the actions have been confusing and the market is not liking what it´s seeing. Well, let´s see how it all evolves.