Morning from Copenhagen.

Should we start out with the fact that this has probably been the largest flip-flopping seen in the history of mankind, or the fact that Trump seemingly decided this yesterday morning when he woke up?

Bizarre scenes from the US president, and it’s pretty obvious that the decision yesterday was pressured by a number of big wall streeters (Dimon, Ackman etc.) as well as the bond market, which hasn’t reacted the way Trump wanted it. However, even with equities up across the board (in a fashion last seen in 08), there are still some questions to be answered. 

While it’s pretty evident that a Trump put is in place – either due to pain levels in his own administration or fund managers, bankers etc. saying stop – the big question is whether it’s in equities or in bond yields? The post on truth yesterday, suggesting that it was probably a good time to buy the dip yesterday clearly referred to equities, but the 4.50% handle in the 10 year bond yield could very well have been the line in the sand. The equity market sold off for 2 months without any meaningful intervention from bankers, fund managers and the likes, but 3 days of bond market volatility / selloff suddenly sees Dimon, Ackman and other large names calling for tariffs to be a bad idea – coincidence? I don’t think so.