Once again many analysts have been either wrong or like billionaire investor Carl Icahn encouraged the sudden decline in stock markets prices to better buy back on the occasion of the also unforecast by pollsters election of Republican nominee Donald Trump as the 45th POTUS. On the lone “round trip” of the November 8-9, 2016 night, Icahn is said to have earned about USD 700 million risking just USD 1 billion on the market.
Since then, all the US stock indices have broken their historic records, following the example of the Russell 2000 (RUT) which has jumped more than 11% in 15 consecutive sessions, an unprecedented move since 1996. If in Europe the rally has been less bullish so far while providing hope that 2016 will end in the green, Russia has been marveling at the bullish speculation of its stocks. The Muscovite index MICEX (MCX) reached 2,100 for the first time ever after a 20% increase since Election Day.
Similarly for the ruble (RUB) which has come back from afar and has recorded a similar performance against the US dollar (USD) this year so far. Even institutions such as the OECD have turned enthusiastic about the forthcoming “Trumponomics”, the economic policy President-elect Trump campaigned for. Such bullish unanimity could therefore announce bearish opportunities if bad news, the Italian referendum for instance, were to spoil the feast.
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