Since the landslide victory of Donald J Trump, the stock market has surged to record highs propelled by animal spirits. To understand animal spirits, imagine the stock market as a jungle….

First a caveat. As a proud Canadian, I have no skin in this game. Whatever one thinks about Donald Trump, does not change the fact he will be leading the US government for at least the next four years.

Since the lows of last November, North American financial markets have come alive like a phoenix rising from the ashes. The welcomed 50 bp rate cut by the Fed was really a cherry on top of the sundae. The real story is the marked change in the tone of Fed Speak.

If it were not enough that investors are digesting less than stellar second quarter earnings, they are also dealing with the mixed seasonal patterns unique to August. August tends to be a mediocre month for stocks, with no strong directional bias.