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Weekly Comic: After years of central bank dominance, politics become the main driver of market sentiment

Published 01/19/2017, 09:34 AM
Updated 01/19/2017, 09:34 AM

Investing.com - For the first year in almost a decade, the biggest driver of market sentiment may not come from monetary policies of central banks around the world, but rather from politicians and the ballot box.

Global financial markets remain focused on U.S. President-elect Donald Trump as he gets ready to take the Oath of Office and offer his inaugural address on Friday.

Investors will welcome any detail he may give on his promises of tax reform, infrastructure spending and deregulation, as well as insight regarding policies on China and the domestic economy.

Trump has been credited with being a major catalyst behind the market's impressive rally since election day, although he has yet to outline his economic policies in detail.

The market has come a long way since former Federal Reserve Chairman Ben Bernanke unleashed the first round of quantitative easing in the U.S. back in March 2009.

Instead, with inflation accelerating across the developed world, investors are looking to politicians to take up the mantle of stimulus.

To see more of Investing.com’s weekly comics, visit: http://www.investing.com/analysis/comics

Latest comments

As a forex day trader, I'm placing my bets on U.S. $ immediately after Trump' inaugural address. I predict by Tuesday USD will have consolidated somewhere in the area of 50 pips above Friday. By next Thursday, we're probably looking at 200 against ALL currency. Let's see if I'm right.
Hi Brad, which elements/factors are you basing your prediction/evaluation on? Thanks
If Donald Trump delivers on what he campaigned on; for the first time in 16 years actual barriers will be dismantled that impede business development, and business growth. Especially to the the energy business. Dropping from Obama's 35% Tax Rate to a 15% Tax Rate and the elimination of thousands of business crushing, job ***Regulations. Things are looking up.
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