Wednesday, January 25, 2017

Trump Rally Breaks 20000 in Near Record Speed

The Dow rally that began after the November 8 election pushed through 19000 on November 22, a gain of 668 points. Another 1000 points was added in the last two months, a near Dow record for speed. The last surge moving this fast was in 2007 when 14000 was hit after a mere 59 days. The Great Recession began the next year. The peak in that boom was hit on October 9, 2007 at 14164 (it took more than 5 years to recover on March 5, 2013).

The more than 9 percent gain in eleven weeks is a record in president-elect history of Dow rallies. It has been accompanied by a near doubling of investor confidence. Clearly, it reflects a reservoir of investment energy that has been damned up by the sense that the tax and regulatory policies of the last eight years would continue and possibly become even more restrictive.

Although there is still considerable concern about Donald Trump’s presidential temperament, his business and Republican establishment appointments have been highly reassuring for the market.

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