Posted on 12/13/2016 4:35:38 AM PST by John W
If the postelection stock market rally continues at its current pace it could be the largest stretching back to the gains scored in the wake of Herbert Hoover’s 1928 election victory.
Major indexes are trading at record levels with the S&P 500 SPX, -0.11% up more than 5% and the Dow Jones Industrial Average DJIA, +0.20% rising 7.8% since Nov. 8 over optimism that President-elect Trump will usher in a new era of economic boom on the back of higher fiscal spending and pro-growth policies.
Blogger Macro Man on Monday noted that the Trump surge is already among the biggest following an election going back more than a century. For historical context, the blog looked as far back as 1896, tracking the market’s performance between election day and inauguration and then the following 12 months after a new president has been sworn in.
“The Trumpflation rally is already quite a bit bigger than average, though there have been postwar rallies that have been bigger (Clinton, JFK, Ike.). Then again, we’re only halfway between the election and the inauguration; if the market keeps this up, it will be the biggest postelection rally since [Herbert] Hoover,” according to Macro Man.
Like Macro Man, Joe Abbott, chief quantitative strategist at Yardeni Research, also found the near-term portents encouraging.
Among Trump’s many pledges, the one that is easiest to implement, by Yardeni’s reckoning, is the proposal to lower taxes on repatriated earnings to 10% from 35%, which could trigger an inflow of up to $2.4 trillion to the U.S.
“Using that money for stock repurchases would provide a brand new and even stronger buyback incentive,” said Yardeni. “Companies could buy back their shares without using funds that first have to be borrowed in the bond market.”
(Excerpt) Read more at marketwatch.com ...
Since Hoover - - - hmmm!
But my paranoia gets the best of me on the dramatic rise. It wasn't too long ago even Trump was saying the market needed a correction. Any idea if Trump is being setup for the stock market to "crash" (example - go from 20K to 15K), on his watch, and blame Trump? I just don't trust anyone right now, especially with the election trying to be stolen. Part of me feels Soros is trying some behind the scenes maneuvers.
You gotta know that Obama will try to take credit for this, pointing at what a wonderful recovery his polices sparked and what good condition he left the market in for Trump.
Where’s my throw-up pot???
I recall him saying so and i liked his honesty. Nothing is sure for now but he may be the one force that can cause a set of conditions to mitigate what was coming under Obama’s policies. Time will tell - Yellen has signaled a raise in rates and I haven’t heard Trump saying anything about it so it may be legit based on what his agenda is.
Derivatives of your time of life.
BE PREPARED.
Trump was saying the market needed a correction when he thought that the strong market was helping his opponent. I feel quite comfortable saying he no longer believes the market needs a correction.
Similarly I do not believe he will ever criticize “loose” Federal Reserve policy again. That was a criticism borne of politics not monetary ideology. He believed Yellen’s loose policy was helping Clinton/Obama, but now that it’s helping him he will like it. I don’t believe he’s going to appoint a bunch of monetary hawks to the FOMC.
Media salivating for a Great Depression they can blame on Trump.
Finally we will see the real recovery, which should give the lie to Obama’s fake recovery.
Right on schedule. 2nd Great Depression to hit when Trump gets in.
Before they do they better look at the last eight years with 94 million people out of work welfare up 35%.
US STOCKS-Wall St extends record rally, Dow closes in on 20,000
U.S. stocks reached all-time highs on Tuesday, with the Dow Jones industrial average less than 100 points away from the 20,000 mark, as a record-setting post-election rally showed no signs of fatigue.
All the three major indexes hit record highs shortly after the open. The Dow has risen about 8.6 percent since Nov.8, with President-elect Donald Trump’s expected agenda of economic stimulus and reduced taxes and regulations fueling the rally.
http://finance.yahoo.com/news/us-stocks-wall-st-extends-180214244.html
Thank goodness nobody studies history these days.
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