Saturday, December 10, 2016


Before the election, prominent stock pickers warned that the Dow Jones Industrial Average would plunge 1,000 points if Donald Trump were elected president.... The exact opposite has occurred.

The Dow closed up nearly 300 points on Wednesday at 19,549.62—less than 500 points from the 20,000 milestone. Moreover, the Dow is up over 1,200 points in the four weeks since Trump was elected—nearly 7 percent.

...Given that the equity markets are often driven by emotion and anticipation of things to come—good or bad—it appears that both institutional and individual investors believe a Trump presidency will be good for the economy, as Fortune sees it.
A rising tide lifts all boats. But in the stock market, that can be a bad thing. When all stocks start rising for no reason, you have to wonder whether Mr. Market is getting a little giddy. That’s not the case right now.