The Trump administration just announced it is going to delay the imposition of 10 per cent tariffs on a swathe of Chinese goods — including cell phones — until December.
Cue the US stock market rallying. The S&P 500 is up 1.42 per cent, the Dow 1.45 per cent and the high-beta Nasdaq 2.08 per cent.
Apple, as a supplier of said cell phones at ludicrously high margins, is up 4.75 per cent so far in early trading.
Which makes Alphaville wonder, if you’re a US voter inclined to vote for a politician who lets markets do their thing, just who are you going to vote for next year?
It’s hard to recall an administration commanding market sentiment on a day-to-day basis like Trump’s does. Not to mention the exploding fiscal deficit.
On the other hand, from the Democrats there’s talk of a Green New Deal, a wealth tax and universal healthcare.
In other words, won’t someone please think of the Von Mises Institute?