Markets

Trumponomics Meets Abenomics

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The jobs report came in very strong this morning. Also today, the Trump team had a shift of gears, returning focus back to the economy.

We had fairly smooth sailing in all things pro-growth for a period of time, and then the narrative turned to immigration and trade. And the broad optimism derailed a bit. Today, Gary Cohn, Trump's top economic advisor was out in front of cameras talking about the tax cuts coming down the pike, progressing on deregulation, the big infrastructure spend coming and repatriation of trillions of dollars in corporate money.

Clearly they are reminding people that there are very economically positive things in the works. With that, we have the Dow back above 20,000.

President Trump will meet with Japanese Prime Minister Abe this weekend in Palm Beach. It's been said that they might play golf at Mar-a-Lago. As we discussed yesterday, other countries have been brought into the fray about currency manipulation and trade. Japan among them.

Interstingly, Abe is expected to come bearing gifts. He is expected to "propose a sweeping economic cooperation package meant to create hundreds of thousands of jobs in the U.S." says a report by AP.

The yen of course has massively devalued against the dollar under Abenomics. And it's been an explicit part of the plan by the BOJ. With that, there's some uneasiness in this meeting for Abe. But as I said yesterday, the tough talk from Trump has been all about China. I don't expect Trump to challenge Japan on the yen. And I'd bet they come away with very positive messaging surrounding the meeting. That would help on this reshaping of the narrative toward growth again. And it makes the Nikkei a good buy going into the weekend.

Japanese stocks remain more than 10% off of the highs of last year, while U.S. stocks are in record high territory.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.