A few days ago Conor Sen tweeted:
It’s close right now, but today might be the lowest close for the VIX since February, 2007.
Here is the broader chart. How can that be? Not to mention a high Dow. The consensus view is that the first two weeks for Trump have been an extreme disaster. But is that true? Protest has been robust, and so far checks and balances seem to be working. He issued a bunch of executive orders that mostly cannot be carried through. He still hasn’t filled most of the second-tier positions of import, and for the State Department he fired/induced to quit a whole bunch of senior figures. That militates in favor of not much getting done. Obamacare abolition and tax reform are being postponed until next year it seems, for better or worse. The Wall is stupid but won’t matter much and may not even happen, given environmental review, Native American rights, and the preferences of Texas Republicans. Trump also trampled on just about every sacred icon held by those who inhabit my Twitter feed, most of all by having Bannon insult the press by telling them to shut up for a while, and the steady stream of absurdities continues. Yet the underlying story (NYT) seems to be about six guys in the White House who don’t know how to use the levers and pulleys of the Executive Branch. Or consider the assessment of E. Richards:
As of now, however, events since January 20 support the conclusion that Donald Trump is not very sincere about actual, rather than verbal chaos and that his administration will mostly defend the world order status quo.
As for beating up on the marmite crowd, is there a better form of training wheels? People, I do not favor this kind of experiment with governance or with rhetoric. And the market is by no means always a correct forecast. But right now it is worried less than many of you are. I do understand that America is consuming some of its political and reputational capital. Yet so far the best prediction is that the relatively manageable scenarios are coming to pass. Addendum: Just think what kind of embedded embarrassment this is for the Democrats. Whether you agree with Democratic economic policy or not, and whether you agree with the markets or not, the Democrats in effect cannot convince the markets that their presidential rule is better for capital values than is the…scenario of Trump. The more stupidities you see, and the more you criticize him, the more painful that ouch should become.