"It's the economy, stupid."
-James Carville

Yesterday, the Democrat presidential nominee took aim at her Republican rival Donald Trump on the economy. In some respects, it seemed like an odd topic for Hillary Clinton to focus on because it’s polling the best for a billionaire whose name has been synonymous with success for decades.

Best on Economy (CNN-ORC)

HRC 43

DJT 51

However, this is exactly where the experts say she has to push back now – she has wrested control of many other key topics and metrics, including mitigating Trump’s (formerly) big lead on terrorism, by shifting the debate after Orlando to guns rather than radical Islam.

Hillary focused on personal issues more so than actual policy proposals.

• Lawsuits
• Atlantic City bankruptcies
• Trump University
• Tax returns

Moreover, she used talking points from Republicans and an unnamed McCain adviser (many think it’s Mark Zandi) to say that Trump’s polices would spark 3.5 million job losses, income stagnation, debt explosion, and stock prices to plummet.

The problem with that is many think these things are already happening.  While there has been job growth, it is anemic compared to past administrations. President Obama has presided in a flaccid job growth and a massive increase in debt.  This is why Hillary wants to bring up husband Bill Clinton as often as possible.  Not only was the market in party mode during the go-go Clinton years, but his presidency also enjoyed the highest monthly job creation and the third best Gross Domestic Growth (GDP) growth.

Bill Clinton also left office with a budget surplus.

Of course, there were exogenous influences, including the technology revolution that fueled massive risk-taking and a stock market bubble that destroyed trillions when it blew up a few months into George W. Bush’s administration.

It’s the economy, stupid!  There is no way anyone could say the Obama economy has lived up to the promises or the potential. 

Market

Sometimes the market seems dull on the surface, and sometimes it is dull; the latter was the case yesterday.  The market is simply marking time as it listens for economic and interest rate clues from Janet Yellen, while waiting for the British exit vote.  The market continues to be held back by the lackluster economy, and the inability to celebrate the mediocrity of green shoots.  Investors want good news on the economy, but is it on the horizon?

Today’s Session

Once again it is a very delicate open to the market and we don't have to be brave.  But I do want to get bold into the Brexit vote, although we could get one more dip before.  On that note, let’s cool our heels for the moment.