Like the harbingers of doom that appeared before the Brexit vote, the “experts” were adamant that a Trump victory in the US Presidential race would result in financial meltdown. Those predictions could not have been further from the truth as the 3 major US stock market indices reached record highs, the USD strengthened to a 15 year high and capital poured into the US in expectation of further stimulus and a pro-growth agenda. Even the OECD has backed the proposed infrastructure spending plans but also warned that protectionist policies and trade disputes could threaten world growth. The Fed kept interest rates unchanged in November but gave a strong signal that moves were imminent and certainly the Fed futures index sees a December rate rise as pretty much a done deal. With GDP being revised upwards to 3.2% on an annualized basis there is also the economic impetus to raise rates.
PegasusCapital - Thu 1st Dec