Another 'risk on' day after the French have seemingly chosen a populist neo-liberal businessman with little policy experience for their front runner.
And our own US version of this new breed, with considerably more panache, has signaled as intention to cut the US corporate tax rate to 15%.
If that 15% was like an Alternative Minimum Tax for corporations it might be a good idea, since so many of the big multinational corporations game the system and pay little to nothing in taxes almost every year.
Somehow, I don't think it is going to work out that way.
Rumor has it that the wealthy will also be enjoying a personal tax cut.
Trickle down tax cuts for the wealthy and their corporations do not produce broader growth and consumption. Spending huge sums on projects designed to benefit a wealthy few, while shifting the burdens of bloated monopolies like healthcare and control frauds like TBTF banking to the middle and working class, in the face of record income inequality, is a policy recipe for disaster.
The ridiculous proposition is going to meet the unbelievable farce.
VIX, a measure of volatility and 'risk' is back down towards the lows of the year.
The US Dollar DX Index moved lower again, as part of the risk reversals trades. They are a bit extended now perhaps.
The metals were weak again today, in observance of the May contract option expiry on the Comex.
I like the way the chart formations are shaping up. But we will still need to wait for them to go 'active.'
Have a pleasant evening.
