The theater of the absurd that has become Washington politics has gotten improbably even weirder since Anthony Scaramucci has taken over as communications director.
In a stunningly vulgar rant to a reporter at The New Yorker last week, the former hedge funder drew yet more gasps from both Washington and Wall Street. Greg Valliere, the chief global strategist at Horizon Investments, observed that it was all part of the "worst week of Trump's presidency."
Aside from Scaramucci's rant, efforts to repeal and replace Obamacare suffered a painful and prolonged failure, hopes that tax reform would accompany tax cuts similarly perished, and the Fed showed no signs of slowing down in its efforts to raise interest rates and tighten monetary policy.
"Perhaps the dysfunction will cool off during the dog days of August, and perhaps there can be a focus on the still-improving economy," Valliere wrote. "But we have to worry, after this ugly week, that Trump, Jared Kushner, Scaramucci — all arrogant New Yorkers — are in way over their heads, unwilling to take guidance from those who know how Washington works."
The big question is when, if ever, this finally catches up to the market and pulls stocks down from their lofty highs. Technical signs are building up that stocks at least are primed to cool off if not post a significant slide.
Of all the stories investors need to watch, perhaps the ongoing dramedy in Washington is the most significant.