kudlow 1-6-18 Bannon belly-up, stocks soar. His brand of populism is anti-growth.

Jan 06, 2018, 06:01 PM

Bannon belly-up, stocks soar. His brand of populism is anti-growth.

Trump decision to cut ties w/ Bannon a great decision. Good for Trump, economy, international relations. Bannon out at Breitbart? Political meaning of rift? Bannon PAC is dead. Will Dems back Bannon to attack Trump? Michael Wolff?

Camp David meeting to determine 2018 agenda. Welfare reform, infrastructure, budget, immigration. Where's Steven Mnuchin? Cohn stays? $18b wall/barrier? Mexico pays? Chain migration? Merit system? Sanctuary cities?

Econ growth 3-4%? Manufacturing rebound? Biz investment cap-ex boom? Wages already rising, much more coming? Will Fed panic?

Gold flat under Yellen; dollar up 16%. Price rule? Powell cautious in 2012. Came around. Lauds Fed staff forecasts. Decent jobs report. 10-year bond jump to 3-3.5%?

Stocks driven by good profits outlook & tax cuts. Earnings revised up to 12% in '18. Techs,energy, materials, financials, insurance/reinsurance. BUT: key factor is rate rise from better growth & capital returns. Long rate correction in stocks? Then rally continues