Note: Subscribers should reference the paywall material here for stocks that should give a good risk/reward scenario for bearish trades.
The Trump administration's legislative outlook is effectively a political desert, with no signs of material legislation either proposed or in sight. The multiple failures of the travel ban and rapid disintegration of the healthcare bill has effectively given Trump the mantle of the nations first lame duck president with only 2 months in office.
He has expended his political capital on multiple failed policy very early on, purposely alienated many factions, and is now mired in an FBI investigation - not to mention suffering from permanently impaired credibility stemming from an unending cornucopia of unsupported accusations, assertions and allegations (ie. he's lying too much).
What does this portend for investors in the short term?
The markets have gotten euphoric since the Trump election, apparently because someone believed what he was selling. Take a look at the broad market jump (powered greatly by the bank jump), and even more unbelievably the bank index jump.
After my many, many warnings about Donald Trump and his administration (I'll list those a little later)... It's official, Fitch has actually warned that the Trump administration is detrimental to sovereign ratings around the world. Keep in mind that we are in this world.