Monday, October 23, 2017

Dow Ignores the Chaos

President Trump and his wild 271 days in office haven’t slowed one of the most impressive market climbs in history. The market is up 26 percent since Trump’s November 8 election in 2016 (market was 18333) and up 17 percent year-to-date. And although nervousness abounds, there are still reasons to believe the ascent may continue.

In spite of Trump’s low approval ratings, lack of legislative accomplishments and near daily controversies, the investor class is still confident that the business climate will continue to improve due to regulatory relief and a tax cut by the end of the year. Treasury Secretary Steven Mnuchin has told Congress the market is linked to their fast action.

Highlighting some of the anxiety about the direction of the boom, a spate of stories pointed out it was 30 years ago, October 19, 1987, that a fast climbing Dow dropped 22.6 percent, or 508 points (Black Monday, Dow started 2246). The market is up 4800 points since the November election.

The Dow is benefitting from a world that appears in a synchronized recovery with Europe, China and Pacific Rim countries all experiencing steady growth after the lingering Great Recession. Federal Reserve is holding calm, oil has stayed in a tight range and earnings are still good. No doubt, a correction is coming, but as of today, the market looks slated for more growth.

Also see The Buzz blogs:
Soaring market and plunging polls
Trump surge builds on Obama’s recovery
Trump gives the rally a boost
Trump rally breaks 20000 in near record speed

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