Between the two Ds of US markets

THE Dollar and the Dow are the focus of market attention. One D reflects the serial stumbles of the US presidency and the other D seems to ignore the very same stumbles. Some investors are beginning to worry that Dow strength may be the market equivalent of fake news because the US dollar weakness seems to be more in tune with the broader politically induced chaos.

Large investors with deep pockets and a resolute attitude to risk can afford to follow their beliefs and go against market trends. Smaller investors and traders do not have enough money to hold onto deteriorating positions. They have to invest in or trade what they see on the chart rather than what they may believe after reading the news.

Those who believed the Dow was too high sold in January and missed the subsequent 10 per cent rise. Those who believed the US dollar would strengthen under President Trump have seen the value of their positions shrink 9 per cent in eight months.