The news was extremely positive for the equity markets last week. FOUR key points:
- Retail Sales proved to be much stronger than consensus;
- The FOMC minutes were very DOVISH as the FED was concerned about the inability of upward inflation to gain traction;
- The demise of anti-globalist Steve Bannon was greeted with cheers on the floor of the New York Stock Exchange. News of the removal resulted in a rally in the S&Ps on Friday, but it was short-lived; and
- The bobble heads of the access media reported the dismissal as an elevation of the Davos-inspired crowd, represented by the Gary Cohn wing of the Trump administration.