wallstreetexaminer.com / by James Rickards • November 26, 2016
Markets are holding their breath waiting for clarity from the Trump economic team. Right now there is something for everyone.
The current stock market rally is clearly attributable to the Trump mix of lower taxes, less regulation and more government spending. Post-election bond markets have indicated inflation expectations. And the drawdown in gold is clearly attributable to the expectation of higher interest rates.
Higher rates from the Fed drive the dollar higher. A low dollar price for gold is just the inverse of the strong dollar; it comes as no surprise. That much is clear.
What is not clear is how the contradictions in the Trump camp will be resolved…