The Dow is close to breaking a monumental record in the post election surge since Trump won just a month ago.
Here’s a graph I got from google that shows how everything changed after the election:
CNN MONEY – Before the election, prominent stock pickers warned the Dow would plunge 1,000 points if Donald Trump was elected. In reality, the exact opposite has happened.
Trump euphoria has sent the index up over 1,200 points in the four weeks since Trump’s shocking defeat of Hillary Clinton. On Wednesday, a burst of buying has sent the Dow surging nearly 300 points to new all-time highs.
The Dow is now within striking distance — roughly 500 points — from the pivotal 20,000 milestone.
Wall Street is betting that Trump will be great for business and help accelerate the U.S. economy. Trump has promised to slash taxes, roll back costly regulations and spend big on infrastructure.
Trump’s less business-friendly promises — tearing up NAFTA, breaking up the big banks and auditing the Federal Reserve — have largely been shrugged off as campaign rhetoric.
Neil Hennessy, president of mutual fund Hennessy Funds, believes more good times are coming and the Dow will soon eclipse 20,000.
“If you’re not in equities, you’re crazy,” Hennessy said. He predicted more cash will flow into stocks as Americans realize how much bonds have tanked since the election, a trend he expects will continue. Bonds have struggled badly due to higher growth and government spending forecasts under Trump.
Just goes to show how horrible the predictions were before the election. People really believe, apparently, that Trump will be great for business. The reverse of that is people are ecstatic about getting out from under Obama’s onerous policies.