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Investors Rude Awakening

US elections were 6 months ago. The first 100 days of Trump's administration ended on April 29th. Markets have been in pause for 2 months.

If we look at the chart of the Dow below, we see that stock investors were rewarded with very fast returns between November and March.

Dow Industrials Weekly Chart

However, does the calm we have seen in US stocks since early March and the obsession with Dow 21,000 reveal the financial realities shown?

US created only 98,000 jobs in March, vs 180,000 expected, CNBC, April 7 '17
U.S. GDP Growth (O.7%) Slowed on Tepid Consumer Spending, WSJ, April 28 '17
Retail Apocalypse: Everything You Need To Know, Visual Capitalist, April 28 '17
Trump slaps first tariffs on Canadian lumber, CNN Money, April 25 '17

S&P500 versus Citi Macro Surprise Index

Algorithms and constant aid by central bankers have given millions of investors and advisors the view that ignoring "negative" financial and geopolitical headlines is wise, and that none of this information need be considered any longer when looking off the top of the largest asset/debt bubble in history. Besides, if we see stocks cut in half again like 2008, the central banks can merely print up trillions in debt again to artificially inflate assets...right?

Click here to join the ongoing commentary from The Investor's Mind. This clock is running down. The amount of history making patterns grows with each month. Are you watching for the big switch? What action will you take when this boom turns to bust? I can't think of a better time to join the readers of The Investor's Mind.

Remember, the greater the assistance to keep markets looking calm, the more powerful the return to reality when it arrives.

 

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