Week in Review:
So here's where it could have begun to fall apart. It's not that this is the first time the chinks in the armor appeared; nope, those have been on display for quite some time. This week may have been, however, the first time the markets may have taken notice because there was enough to digest on Thursday afternoon, to make a judgment upon, for it was the first Presidential Press Conference of the Trump administration. In the aftermath, nervous investors would postulate as to whether the muted decline in the indices were coincidental with the spectacle of what rational people can only view as irrational behavior at the lectern or nothing more than a consolidating market after a record run. It didn't take long for a verdict to be rendered as Friday's follow-up signaled business as usual in the era of the Trump Presidency – all that matters is what matters to markets – as the day began slightly in the red with losses moderating as trading wore on, final direction determinable on the close due to options expiration but likely meaningless either way. In between were the comments at Boeing's facility and they were – well, Presidential and on point.
Put into perspective, the S&P rose 2.5 percent over the previous 7 trading days adding to their year-to-date gains and fueling competition with passive investors for assets exhibiting outperformance versus the market, a result of correlations breaking down for the first time in – well, years, actually. So if the indices give up a little ground, who cares? With others in the White House, it would be called healthy; with Trump it is an ominous sign of the administration falling apart and stock market Armageddon. Not yet.