Another Trump Correction

From new all-time highs despite the Comey drama, we think we are in for the second Trump correction. The story of a memo that the media are construing as an attempt by Trump to obstruct justice, by supposedly asking Comey to drop the Flynn investigation, puts Trump out of control of the narrative, and risks bogging down the GOP pro-growth agenda. That said, drama in the White House gives the GOP Congress all the more incentive to “do something” – that is, to pass massive tax cuts and Obamacare repeal-and-replace. Just to examine extreme possibilities, the worst-case scenario is we get President Pence – not a terrible outcome. The critical thing to remember is that the global generational “turning” to greater risk tolerance has never been about Trump personally. He is its effect, not its cause.