Purchase the March 2017 Dowcast Report digital newsletter at www.dowcastreport.com The format is PDF. It includes more macro trends of market indices and A.P. Moore's innovate insights on various financial topics
Anthony Peter Moore's brief analysis and commentary on the Dow Jones for
the month of April 2017 is posted below.
Here we are in April and I expect the Dow Jones to stay bearish from now until April 20th. Investors got what they wanted in March when President Trump laid out his budget plan which reduces trillions of dollars in government spending. Yet, more uncertainty looms and a major reason for it was the failure of his administration to repeal and replace the Affordable Care Act. Investors are still awaiting more regulation roll backs, more tax cuts, and more reason to throw funds into the market. March saw the scaling back of Wall Street reform laws and internet privacy laws with the market failing to respond in a way that correlates with the sense of anticipation for these policies. Bond yields will drop this month when investors began to seek an alternative universe -from stocks- to place their hard earned money in. The instability of the stock market is predicted to continue in April. Volatility rose in March as predicted here last month. This was probably the only source of information that foresaw the increase. Expect volatility to continue rising until about mid-April along with the market veering downward. Around the 20th of April, expect the market to start seeing green again. The Fed raised rates in March, and with the market decline that proceeded it, I don't expect them to do the same in April. the Fed wants the market to mature at a slow but steady pace. Donald Trump wants the opposite. Much is anticipated as to how the intentions of the Administration and the intentions of the Fed will be compatible with one another. Trump has already signed executive orders for regulation roll backs that should have stimulated the economy in March, however, it didn't help that the Fed decided that March would be a good time to raise rates. This will become common place this year: investors waiting on something to cheer while at the same time of receiving it and then getting something to worry about along with it.