2016’s surprise Brexit and Donald Trump’s US presidential victory was evident of prevailing `populism’ and we can expect more of that in France , Germany and Holland election in 2017. Expect market volatility when Trump starts to roll out his much anticipated tax reform and ultra growth policies on his inauguration on 20 Jan: Today’s benign Japan inflation figures and Bank of Japan’s 0% yield target policies on the 10-year government bond means shorting the Yen and going long on the Nikkei which this blog has been advocating since Trump was elected remain the best trade as long as the Bond Riot continues . Hopes of improved Global economy and that Trump will unleash an unprecedented fiscal spending on infrastructure will keep the US market positive until 20 Jan when Trump’s policies are tested by the markets. I wish everyone a blessed New Year and happy holiday!
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