Mean Reversion to Reality Seems Likely for Markets

Talking about anti-establishment politics, President Trump has been demonstrating the realities of “new” presidential politics with tweets directed at the mainstream media over the weekend.

Again, the views of the President are of little direct interest to financial markets’ investors or to economists.

What matters is the extent to which this undermines the President’s approval rating with the Republican supporters and the extent to which this undermines the President’s ability to work with Republicans in Congress.

The two issues are of course linked.

The stalled position of the Trumpcare Healthcare reforms is indicative of the particular problem in the way that the President has been unable to use electoral popularity to sway Republican Senators who are currently opposed to the measure.

This all goes to affect expectations for fiscal policy.

That said, over in Japan, and interestingly just when many investors were starting to become less concerned by anti-establishment politics,



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