This here’s a story ’bout Donnie J. and DJI… <woo.. woo..>
I’ve added a link to help set the mood 🙂
Yesterday markets blasted again through lifetime highs as we saw the Dow take out the euphoric $20,000 level for the first time.
President Trump heralded this mighty threshold in a way only he could pull off:
— President Trump (@POTUS) January 25, 2017
I thought it might be interesting to reminisce on the President’s recent views of financial market valuations and so I dug up a few motivational quotes:
“So Bloated” – June 6, 2015
“Big Fat Ugly Bubble”, “Believe Me” – Sep. 26, 2016
Who doesn’t like a little irony, right?
Well, anyone daring to carry short deltas and a fondness for volatility isn’t finding this ironic new year twist amusing. All the chest bumping in the equity markets left the VIX cowering off to fresh multi-year lows:
What about those pesky interest rates he warned about? Here’s a look at the rising 10yr yield:
So Hats Off to the Bulls…
If you dare to be bear, look at it this way: You’ve never been able to sell them this high and volatility is looking pretty darn cheap.