The Trump rally that has been driving the market ever since the beginning of November has proved a lot of forecasters wrong and has in many ways changed the dynamics of the market. Investors have plowed billions into stocks over the past few months while the generally positive sentiment within markets has helped pull central banks back into the shadows. Central bank decisions no longer have such an impact on equities. Of course, as the market has rallied to new highs there have been renewed calls that equities are in a bubble.Indeed, as we note further below investors have ceased to hedge.
Bank of America’s “Icarus trade” for example speculates that the S&P 500 will melt up to 2,500 during...
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