With so many people pricing in strong economic growth the critical issue will be how many of the pro-growth policies President Trump & the Republican Congress will be able to push through. With every year now seemingly an election year (I heard them talking about the 2018 mid-terms on CNN
The market is pricing in a perfect execution of Donald Trump’s positive plans and ignoring any possible negative outcomes despite his inconsistent behavior. Many are expecting a return of the Reagan years without factoring in the differences between the situation Ronald Reagan inherited relative to the situation
Everyone is back from their Thanksgiving holiday so we are now seeing market participants turning their focus to the rest of 2016 and beyond. The overwhelming consensus seems to be a Trump Presidency will lead to years of strong growth and we are seeing market participants adjusting their portfolios accordingly.
We have now had a day to digest the “shocking” result of the election. Essentially every model deployed by Wall Street was wrong on the outcome of the election. Worse, their predicted reaction by the market should Donald Trump win was also completely wrong. I do not know
