The Chief Strategist: Months-long rally - Trump joker of the week?
The big focus this week will be on the French election, Chinese PMI’s, and one of the most important financial events of the week happens on Tuesday, when president Trump speaks in Congress. According to the Chief strategist, Ib Fredslund Madsen, Trump might be the joker of the week, depending on whether or not his 28/2 address will contain any fiscal details.
The months-long rally has been a function of two drivers: Improved nominal growth and political optimism on Trump stimulus. Politics remains a much larger risk as the gap between reality and expectations is still large but it remains to be seen how long investors are willing to give the new US administration the benefit of the doubt.