Trump Bull Market Bounty Tops $1 Trillion As Bear Case Mutes

Ted

FYI: Can Trump's Policies Match Investor Expectations?
Donald Trump is doing to U.S. equity bears what seven years of economic stimulus rarely could: shut them up.

Two years of paralysis has for now ended in stocks, with more than $1 trillion added to shares values since Election Day and the Dow Jones Industrial Average looking bound for 20,000. Both the Dow and S&P 500 Index jumped to fresh records Wednesday, joined by transportation companies and small caps, while banks traded at eight-year highs.
Regards,
Ted
https://www.bloomberg.com/news/articles/2016-12-07/trump-bull-market-bounty-tops-1-trillion-as-bear-cases-go-quiet

PRESSmUP

Per the article,

"The suddenly booming stock market has prompted fund managers who had been hoarding cash amid economic and political uncertainty to put money to work at the fastest rate since 2009. According to Bank of America Corp.’s latest survey in November, cash levels plunged to 5 percent from 5.8 percent in October.

Investors are fretting they’ll miss out on a year-end rally. They added almost $50 billion to exchange-traded funds that track U.S. equities last month, the most since Bloomberg began tracking the data since 2000.

“US equity investors have focused more on hope than fear since Donald Trump’s election,” David Kostin, chief U.S. equity strategist at Goldman Sachs Group Inc. wrote in his 2017 outlook."

Well...so after one of the biggest run-ups in market history, investors start piling in now. Sounds good...happy days are here again!

davidrmoran

>> Two years of paralysis has for now ended in stocks

Huh? Sort of fake lede.

JohnChisum

Two years might be exaggerating a little bit. More like one year to 18 months. Any chart of the major US indexes shows a flat to down trend.

hank

@Ted, Feeling a little giddy are we? (You need to stop watching CNBC.)

"Consider that had you been prescient enough to buy shares of a low-cost stock index fund on Mr. Obama’s first inauguration day, on Jan. 20, 2009, you would now have tripled your money. Stock market performance of this level has rarely been surpassed. (Article from August, 2016) " http://www.nytimes.com/2016/08/21/your-money/the-obama-years-the-best-of-times-to-be-a-stock-investor.html?_r=0

Ted

@hank: One I don't watch CNBC, and two I have never said investors haven't done well under Obama, and three I predicted a double digit advance for the S&P 500 at he beginning of 2016 long before we knew Trump would become president. Am I patting myself on the back, you better believe I am !
Regards,
ted

hank

Yeah - Sorry, I was a bit hard on you (probably sour grapes from the election).

However, 5 weeks is a bit early to label the market "Trump Bull Market" - or anything else. That's what the CNBC crowd has been flogging - so I made an (incorrect) assumption.

As you used to be fond of saying, "Investing is a marathon not a sprint."
Regards

rono

Howdy folks,

Hope everyone is doing well.

The nut is how do we make money from this incoming administration, not whether this is either bullish or bearish. Every minute of every day for every bull there has to be a bear.

Right now 'sure' bets seem to be infrastructure, energy service and financial service. Any of you good folks have some favorites in these arenas? I've added FCX and DE for individual stocks and some fido sector funds - FSRFX, FSESX, and FSDAX (fido's easy for me these days).

What other sectors/segments/regions?

Thanks in advance and happy holidays,

and so it goes,

peace,

rono