The spinal cord is the main pathway for information connecting the brain and the peripheral nervous system. Strong and well protected, we tend to take its health for granted.
The market’s rally since November mirrors our own central nervous system.
The main pathway for information that has helped spur the rally is the optimism of a continuing economic recovery.
Looking at President Trump’s policies since taking office, he has pulled out of a trade agreement in Asia, taken a tough stance with companies manufacturing in Mexico and, with an executive order, gave the greenlight to pipelines in the Midwest.
All with the intention of creating jobs in the U.S.A.
The Dow’s vertebrae, which protects its spinal cord (hence the bullish case), believes that he will get the economy moving faster. What’s good for companies, is good for the shareholder’s bottom line.
Spinal cord injuries can easily occur from overstretching, overexerting or by experiencing a spinal cord injury such as a sudden blow or cut to the spine.
Given the precarious nature of the spine, is the market taking its own healthy central nervous system for granted?
One possible spinal injury is if President Trump does not play nice with China. The Chinese government owns more than a trillion dollars in our government bonds.
Should China decide to sell those bonds, interest rates will go through the roof. If borrowing costs rise too much, the economy comes to a screeching halt.
A big blow to the spinal cord.
A trade war with Mexico? The U.S. by far, exceeds how much we buy from them versus what they buy from us (except for computer accessories, oil-related products and computer chips).
The U.S. imports over $295 billion dollars of Mexico’s auto parts, cars, trucks, crude oil, TV and video equipment, household appliances, fruits and vegetables. Nearly 15% of all goods the U.S imports from the entire world comes from Mexico.
Mexico spends about $50-75 billion dollars buying goods from us.
