Investors are always looking 6-9 months down the road and at this time they are seeing a greatly improved economy mostly due to the axing of business killing regulations put in place by the Left.
The reasons for the markets advance are based on more than hope and change. We have already seen many companies commit to relocating their mfg back to America based on DJT promises to ease the regulations which caused them to leave in the first place.
Totally agree. The dynamics of this is exciting.
What we are seeing is an attempt by large cap manufacturing to placate Trumps tariffs initiative by throwing a few peanuts at the US market. What large caps are afraid of is an import tariff.
Mr. Trump slap a 20% import tariff on all incoming goods and services.
The big four catalysts increasing optimism and driving the market higher are:
1. Elimination of many burdensome and costly regulations
2. Reduction in personal and corporate taxes
3. Improved US employment outlook
4. A business friendly administration
Combined, these are powerful forces that will release animal spirits. The current run up may have slowed down, and we may see a correction soon as the market is richly priced, but the long term outlook for stocks is very positive in my opinion.