Bloomberg: “Why the Market Isn’t Working as Trump’s Guardrail”
By datatrekresearch in IN THE NEWS
Excerpt from Bloomberg quoting DataTrek co-founder Nick Colas:
.... Nicholas Colas of DataTrek Research argues that the “strike price” for the Trump Put is “some way from where we are.” He offers the VIX index of equity volatility as a simple gauge. A VIX of 50 prompted last year’s climbdown on tariffs, he argues, while the administration switched to much more dovish rhetoric on Iran when it hit 30 two months ago...
...The continued low VIX owes much to enduring macroeconomic confidence in the US, Colas says. “The thing that’s moved the strike price further away is mainly that investors are more and more convinced that the American economy is recession-proof,” he said. “It’s powered by this weird ability to hold on to jobs despite everything.” Measures such as initial claims and the unemployment rate have stayed well under control throughout last year’s trade war and the current conflict"....
Full article here on Bloomberg.
