Trump is the Straw That Broke the Fixed Income Camel’s Back

The media has credited Trump for the rally in yields and the recent swoon in the equity market.  The argument goes that Trump’s policies notably with higher spending, lower taxes and less regulation will be positive for growth and inflation. Since being elected president, the market has wiped over 1 trillion of dollars in fixed income value and caused equities to soar.  Such a swing surely isn’t attributable to Trump.  It doesn’t add up. Beginning in February this year, the markets have ignored improving fundamentals pointing to stronger economic and earnings growth and higher rates ahead.  Investors decisions have been…