Bannon Overboard

The departure of Bannon has been widely hailed as market-friendly, because it eliminates a potential source of economic shocks from protectionism or tax hikes. But his “economic nationalism” has also been the source of pro-growth policies such as withdrawal from the Paris Climate Accords. He has been gracious in his public statements so far, particularly in acknowledging Kelly’s authority. But he was likely the source of many embarrassing leaks, and he may be leaving the White House with documents that could cause further embarrassment. With the political economy still gripped by clinical mass hysteria, we continue to think we are working our way through a buyable dip, the bottom of which hasn’t been seen yet.