The stock market is a weird thing.
I was listening to Bloomberg this morning and the pundits were pontificating as to the reason for the recent run up in stocks. Everyone agreed that it had everything to do with Trump, however the core reason for the run up was in dispute. Some said that the market was still factoring some sort of Trump “stimulus” of the classic Keynesian type. Others pooh poohed this idea and said that it was “animal spirits” that Trump had conjured. Regardless, stock surfers would be wise to keep their eyes very open. The retail investors appear to have come in of late and that usually means a quickly maturing market. And rates appear to be moving up. (The market is anticipating 3 hikes this year.)
(From The Business Insider)
It is unclear what Trump was referring to in describing “the longest winning streak,” since there are numerous measures for that, but in any case there has indeed been a sizable run-up in the stock market since the election, with all three major indexes at record highs.
Most recently, the Nasdaq composite index has set a record-high close seven days in a row, which is the longest streak since 1999. Additionally, the S&P 500, the Dow Jones industrial average, and the Nasdaq have all hit closing records at the same time for five straight days, the longest triple winning streak in 25 years.
The impressive statistics don’t stop there.