Investor sentiment can turn on a dime; all that is needed is one social media post by the US president. For now, however, economic and oil prospects are increasingly cloudy. US allies and foes are uncertain in their response to the disruptive agenda of the administration, but US consumers are not so hesitant.
In the absence of any clear pathway forward on global economic growth or supply prospects and given the disruptive and unpredictable nature of the US administration the market does what is the most reasonable thing to do under the circumstances: react to headlines.
In 1886, the Liberal politician Joseph Chamberlain said: “In politics, there is no use in looking beyond the next fortnight.” In the 1960’s this was taken up by the British Prime Minister Harold Wilson’s: “A week is a long time in politics.”
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