Reflation Trade: Stocks rallying, Treasuries and dollar rising

Prior to the Nov. 8 election, market participants assumed their future investment activity would remain in an ongoing domestic and global economic setting of chronic slow growth, low to negative interest rates and unsustainable debt.

Said differently, investors and investment managers globally assumed optimum returns must be achieved in a global economic setting of chronic slow growth, historic low to negative interest rates and building debt. 

“TODAY” market participants “anticipate” near term reflation will be bearish for safe haven assets like U.S. Treasuries, utilities, gold, etc. as indicated by chart patterns, and bullish the dollar, U.S. equities and some other global equities as well as building support for future commodity price strength.

Expect a Fed rate increase in December and multiple times in 2017