24 May Locking bias
According to CNN, President Donald Trump is lawyering up with private attorneys that will represent him ahead of the pending testimonies that could create more troubles for his administration in the months and possible years to come. The battle over whether his administration had illegal ties to Russia to assist in a Trump victory during the 2016 election appears likely to overshadow any progress President Trump makes in his role as Commander in Chief. Although the word “impeachment” is thrown around the media, there are few high up government officials willing to even bring up the subject. However, according to CNN, the Trump administration is proactively researching the legalities surrounding the impeachment process. We can only assume that there is some level of fear that the imminent testimonies of former FBI Chief James Comey and others could produce more chatter regarding the subject.
Meanwhile, the stock market continued to climb higher, and is now sitting just below all-time high levels. Clearly un-phased, stock investors show little concern that the Russian chatter will slow Trumps ability to push through tax reform, healthcare reform, and the proposed budget cuts announced yesterday. However, many experts believe that each of the three proposals have a low probability of passing anytime soon, if at all. There seems to even be a lack of support among fellow Republicans who don’t feel that President Trumps addenda is in alignment with the desires of most Americans. Nonetheless, the entertainment factor of watching all sides of the political spectrum pipe up regarding ongoing issues seems more entertaining to many than a nice dinner out followed by a romantic movie. So, sit back, enjoy some popcorn and watch as events unfold.
With mortgage bonds more likely to fall in face of a strong stock market, we will maintain our locking bias.