With multilateral retaliation for the chemical attack in Syria now underway, it might be worth mentioning a few other things that have the potential to move markets in the near future - things that might be pushed into the background.
Cautious market participants have been keeping their powder dry in preparation for more turbulence as they witness instability in DC. The search for truth in matters related to the US administration's inception is being met with extreme prejudice. Regardless of outcome, there is always the potential for more unrest.
I don't want to overstate the gravity of such rhetoric. Institutional life in the west is tethered to a long period of stability that can fade from focus when our ancient limbic systems are under assault by words and events that keep us off balance. But to predict that things might return soon to the low volatility environment that preceded 2018 is probably naive. There are many who feel that the latter stages of that low volatility environment were artificial - particularly when viewed in the context of the political changes that underpinned the market action of 2017.
As you know, the unfolding situation in DC is fueled in part by individuals who see themselves as victims of a deep, counterculture conspiracy. Some prominent Trump surrogates are recommending extreme measures; for instance, that the Republicans have Capitol police raid the FBI. Yes, you read that right.
Very influential ideologues that have crossed the line of no return with the current administration will probably continue to practice violent rhetorical and litigious opposition to a federal investigation that collides with their fervently held beliefs.
The recently fired FBI Director's book is due out Tuesday but there are copies in circulation and excerpts are available. The political left does not particularly like the ex-Director because he exercised what many would call impartiality and candor to do with the president’s main 2016 competition. The far right does not like him either, because he and others might know how naughty the current administration is believed to have been; and because he is using rather unconventional methods to inform a public that is increasingly volatile and tribal in their assessments of the situation.
In the wake of the FBI raid on the president's personal attorney - affected by SDNY and approved by the DOJ - keep your eyes out for a further assault on the Deputy Attorney General et al. This could cause a level of market volatility that might shock those who believe that only price pays. That search warrant, btw, is believed by many to have yielded some very significant roadmaps to the current investigation.
A few of the president's latest tweets are my contribution to this weekend's theme. It's funny so long as you suspend reality and divorce yourself from the potential consequences.
(20min delay)