The Trumpian Bull And The Policy Bull Beneath

Then, let’s take it one step further and examine what U.S. financial asset outperformance has meant for Central Bank policy. At the margin, the fact that the Fed also tunes to financial condition has caused the Federal Reserve to be marginally more hawkish than would otherwise been the case, This has caused even more capital to be attracted to the U.S., meaning the U.S. dollar has been bid even higher.

So the end result of the tax reform bill has been a massive bid to U.S. financial assets as money has ploughed in from all over the world.