It is no big deal. It means absolutely nothing because the President has told us he has a “Very Good Brain.” And when you have a very good brain in his final analysis that means you don’t have to take anybody’s advice. This seems to exclude one person, the last person he spoke to before making the decision.
Gary Cohn, like many others in the White House, has really had little to do with regards to policy decision-making. More importantly, Cohn had nothing to do in the early months of 2009 in the launching of our current secular bull market. When the Trump administration came into office last year Cohn’s appointment may have given some comfort that there would be an experienced adult in the room when economic policy was being cooked up. But anyone paying attention over the last thirteen months would certainly have seen his influence as nominal in shaping policy.
That policy, in retrospect, is easy to articulate; cut regulation to the bone and cut taxes. Trump did the regulation piece with strokes of a pen. The same holds true for the tax cut … voila gasoline on an already warming economy.
As I pen this post (8:00 pm CST Tuesday 3/6) the Dow Industrials, S&P 500 and NASDAQ futures are all down over 1%. There also seems to be a mini-flight to safety afoot with the 10yr. TSY yield down 18 basis points at 2.86%.
The way things are moving in the post-market trading the market may end up opening stronger tomorrow. In case it does not, my post is meant to make sure we all Get real in the face on Cohn’s departure. It is a non-event.
What do you think?
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