About this episode
* The Dow Jones is in record territory, closing above 19,000; they're already starting to talk Dow 20,000 now * The markets are euphoric * All the traders who were so convinced that President Trump would be a disaster for the stock market, now think it's a boom for the stock market * It shows you how fickle investors are, but also how quickly the narrative can flip * Personally, I don't think it has anything to do with the fundamentals * I think traders are trying to push the markets in a particular direction, and they're just grasping for reasons to justify it * Obviously, what they're talking about now is all this extra economic growth and inflation (supposedly inflation is a good thing) * This is going to result from the the massive fiscal stimulus that we're going to get from the Trump administration * Of course, everybody is ignoring the monetary drag that is already evident from the bloodbath in the bond market * And this is going to continue, in fact if you look at the trend lines * We've broken some trend lines now, which were down in yield and up in bond prices that have been in existence since 2007 * So we have done some serious technical damage to the bond market * The 10-year yield, right now, is at 2.357, which is still low * But it has moved up by 32% in the last 2 weeks * That is a huge percentage increase in long-term interest rates * First of all, this is already decimating the commercial real estate market, which is the bulk of Donald Trump's net worth * He's going to be running his business from the White House while he is running the country; he says that's perfectly legal * Clearly he doesn't want to see a continuation of the collapse in the commercial real estate market * But believe me, these cap rates are moving up rapidly Our Sponsors: * Check out FRE and use my code LISTEN20 for a great deal: https://frepouch.com * Check out Infinite Epigenetics: https://infiniteepigenetics.com/GOLD * Check out Justin Wine and use my code SCHIFF20 for a great deal: https://www.justinwine.com Privacy & Opt-Out: https://redcircle.com/privacy