What’s going on in the world…
Market opens in the green again, as earnings are overriding geopolitics, which have also cooled in temperature a bit. Corporate America is in solid shape and profits are growing with the assistance of lower taxes and increased demand. The major indexes are back in the green for 2018. It’s been a wild 3 ½ months to start the year. We expect the volatility to continue. Tax day got extended by a day due to a technical glitch, lucky for those procrastinators. Trump and Abe had a visit in Florida yesterday. Are we embracing TPP or not? The President is waffling again on the subject. Brexit is back in headlines. Is it ever going to happen? It was reported that CIA Director and Trump’s nominee to replace Rex Tillerson as Secretary of State, Mike Pompeo met with North Korean leaders already, setting the stage for a summit in May. 16-year olds might be able to vote. There’s legislation pushing for it. Commodities are charging higher in early trading, led by Crude. WTI is back above $67, a multi-year high. Gold is higher too. Interest rates are moving upward, but the 10-Year Treasury yield remains stuck at 2.8%, for now. Inflation is percolating. That’s what the Fed wants. The Market is still recalibrating all of the major undercurrents. Some are good, some not so much. It’s a process. The yield curve continues to tighten, and the spread between 2’s and 10’s is the tightest since 2007, before the crisis. We are studying this very closely. The world lost a great person yesterday. Barbara Bush, who had somewhat unique role as First Lady followed by First Mother, passed away. She was a caring and authentic individual. We can all benefit from learning more about how she lived her life and carried herself. She was tough, nurturing and authentic. Those are some special qualities.
Have a great morning,
Mike Frazier
