Market Awaits The Fed

London (Dec 13)  It appears that the markets are still fighting the dollar and current equity strength. I continue to believe the euphoria and hope expressed in the market may be quickly extinguished in early 2017, but for now you can’t fight the momentum and trend. The markets await the Fed tomorrow. A 25-basis-point increase is fully expected and obviously the market will rally with a bang, should the Fed not deliver. The increase is not the message. It will be forward Fed guidance for 2017. I suspect they will be cautious and tie their policy to efforts on the fiscal side. Can Mr. Trump deliver? Certainly. Can it be paid for? Certainly not. Does the market continue on its merry way ignoring inflated budget deficits and a stronger dollar?. There is precedent, but I suspect a “mother” of all bubbles is in the offing.

Source: KitcoNews