It seems the markets have become bored by politics. The Italian referendum has been the latest to
go the “wrong” way.
That hasn’t caused a crash in the stockmarket.
On the contrary, the FTSE MIB has rallied 13% in recent days, taking it to a six-month high.
Economic indicators in Europe are stronger and inflation expectations have risen. That indicates that the threat of deflation may well be behind us.
I am scouring Europe for opportunities.
Donald Trump’s timing has been exemplary. His victory has coincided with forces that were already underway.
His outing as a tax cutter, deregulator and fiscal spender has been well received. I suspect that they’ll come a time when markets get ahead of themselves, but for the time being, all is well.
Meanwhile, the US banks have surged since the US election. UK and European banks have been a little slower, but are now catching up.