The post-election equity market has been fueled by expectations. How can we be so sure, you may ask? Well, since nothing in the economy changed over-night on the 8th of November, we can safely say that the market move that came the next day (and stayed) was based on expectations.
Expectations, however, have a rather short shelf-life. Even if these expectations become reality (which is not a forgone nor, perhaps, even a likely conclusion), the timing of these wished-for outcomes does not include the next six months. Since the market is a futures market, in the sense that it tries to look about six months ahead, and since none of the expectations can reasonably materialize within that time-frame, we see it as likely that the market will, at a minimum, go through a correction. We agree with Briefing.com:
"The market has got too far ahead of itself on the stimulus