Peaceful Transition of Power, Now Get on with it!

So the peaceful transfer of power happened on Friday - January 20th and the ceremonies rolled on without interruption or civil disobedience - leaving many to breathe a sigh of relief on Friday.  While there were some fireworks in his speech - there wasn't anything that ignited the bulls or the bears...now while stocks did end the day higher - they ended the week a bit lower as investors/traders continue to assess the implications of the Trump Presidency......Will he get everything he wants?  No, Will he have to compromise with Congress, Yes, Will investors/traders line up on both sides of the argument - Of course and that is what makes a mkt.....buyers and sellers - willing to actively participate in the process....

In his inaugural address - he took a swipe at Washington establishment - sending a warning shot across the bow saying that:

"For too long, a small group  in our nation's capital has reaped the rewards of government while the people have borne the cost.....the establishment protected itself, but not the citizens of our country and that will change immediately"

This comment was directed at BOTH parties - as he made it clear that ALL of them are part of the problem.....This was NOT a Republican vs. Democratic fiery speech at all - in it he dragged both sides into the ring and challenged them to reconsider their role in governing......

Now that the tone has been set - many are left to wonder what's next and no matter what your politics are - HE is now the President and like we do with every new president - agree with him or not - it is important to respect the office.  

Discussion and debate are welcomed and encouraged - but threats to him personally and the system as a whole should not be tolerated - and Madonna should be the first one held to account for her irrational and irresponsible rhetoric at the "Women's March" on Saturday...(comments that she is backing off of now that the FBI has knocked on her door - saying that she was 'misunderstood'!) - But that's another story....and  what's with the obsession with the crowd on Friday?  Is that what is important to Americans?   I mean who really cares whether there were 1 mil people or 2 mil people - I mean the whole debate borders on stupidity, no?  Who cares what HE thinks about the size of the crowd - it was what it was - now move on.....

Americans are much more concerned about what the future looks like, how they will benefit, how the country will benefit and they now expect results...and those results begin with Congress voting on his cabinet appointments - And  it seems that the Democrats are lining up to slow down or block approval of as many as 9 of his cabinet selections. (A record number of 21 cabinet nominations were submitted by Trump prior to the Inauguration and only two were voted on and approved) - so Congress continues to hold up the process.....for how long will this go on.....?  Who are they hurting in the process?  Have they not learned anything from the election and the losses that they suffered? 

So the mkts remain volatile and will most likely continue to remain volatile.... as the Trump administration gets to work.... Now the mkts remain highly overbought - as they have been pricing in perfection, and the possibility of a coming ' technical correction' in the weeks ahead should not be ruled out.  There are a host of challenges ahead for investors and traders to consider in the remaining days of January into February. 

Oil and the continued 'glut' of supply will be a daily debate....prices have fallen from their most recent highs of $58/ barrel - yet still remain firmly above $50./barrel.  OPEC and NON-OPEC producers continue to butt heads and both the Saudi's and the Venezuelans continue to say that the US is 'closely integrated' in the global energy mkts and Trumps talk of ending dependence on OPEC oil is unrealistic.  (Currently we import about 3 mil barrels of oil a day from OPEC.)

Next up is the FED and the possibility of another interest rate hike,(unlikely at this meeting), quarterly earnings , surprises and disappointments and any number of unexpected geopolitical disruptions in the Mideast, Europe or Asia.  The congressional cabinet selection slowdown will also hammer at the confidence that has led to the post-election rally that is already a bit "long in the tooth'..all contribute to investor caution as we begin Trumps first 100 days.

US futures are down 4 pts in early pre-mkt trading....The weekend was void of any macroeconomic news and was dominated (as detailed) by the political fallout after the inauguration.  There are no economic reports today so the focus will continue to be on the Senate and the confirmation process.  Rex Tillerson is up next as the Senate Foreign Relations Committee votes on his nomination.  Keep your eyes on how Marco Rubio votes - it will say a lot about his support of Trump.

GS is pushing investors into buying US companies that pay the highest taxes - because they will be the beneficiaries of tax reform...while Strategas Partners is suggesting investors watch how many US companies begin marketing how many new US JOBS they are creating (Hire American/Buy American....).

We will hear from the SEC, the IMF and the ECB today as worldwide conferences feature keynote addresses by the heads of each organization.....Some headlines will have the ability to move currency and debt mkts - which could then have a ripple effect and create volatility in the equity mkts.   

Overnight in Asia - mkts were mixed to lower......as global investors seek clarity out of the WH......In Japan the Yen strengthened causing exporters to fall......think autos and electronics.   

European mkts are all lower this morning as investors there are more worried about Trump's 'protectionist policy' rhetoric as a new day dawns.  PM May's Washington visit on Friday is sure to create a lot of chatter as she is expected to discuss future trade relations with the US post the BREXIT vote.  The US is Britain's second largest trading partner (Germany is #1).  FTSE - 0.38%, CAC 40 - 0.30%, DAX - 0.4%, EUROSTOXX - 0.35%, SPAIN - 0.25% and ITALY - 0.04%.

Take Good Care
KP

 

Breaded Pork Cutlets Bathed in White Wine 

Preheat the oven to 350 degrees. 

This is an easy dish to make and one that will become a family favorite.  For this you need – boneless pork cutlets, eggs, seasoned breadcrumbs, flour, butter, white wine and chicken stock. 

Begin by rinsing and patting dry the pork cutlets.  Set aside. 

In a bowl beat 5 eggs – set aside.  In a large bowl – add the breadcrumbs – season with pepper, onion powder, garlic powder, and 2 handfuls of grated parmegiana cheese.  Mix well and smell the breadcrumbs – how great is that?  Ok.  So now make a production line. 

First Cutlets, then the bowl of flour, then the eggs, and then the breadcrumbs.  Dredge the cutlets in the flour, dip in the eggs and then in the breadcrumbs – set aside and repeat. 

Next – melt ½ stick of butter and a splash of olive oil in a large non stick frying pan.  When hot – sear the cutlets on both sides until the breadcrumbs form a crust – maybe like 4 mins per side.  Place in a pyrex glass baking dish.  Next – add some white wine to the pan and deglaze – Now add some chicken stock – enough that when you add to the baking dish – the cutlets are bathing – do not cover them in the liquid. 

Now cover the dish with tin foil really tightly and place in the oven for 45 mins or so.

Remove and serve with a side of sautéed broccolini and a large mixed green salad with sliced tomatoes, red onions, cucumbers –  Dress in your favorite dressing. 

 
Buon Appetito.