What is not to love about this stock market rally since Trump was elected? Those who stayed put and did not sell the initial knee jerk reaction by the market to sell have been rewarded by a euphoric rise in market valuation as measured by the broad market indices (DIA) (SPY).
But investors should beware when politics start to cause investors to stampede into positions and bid up stocks that were arguably over valued before the election. Need I remind readers that over the last 8 years we had a stock market that rarely fell because the Fed kept interest rates at zero percent? Then, Europe and Japan central banks piled on with equally outrageous asset buying programs, including buying equities. But the central bank inflation which underlies stock market valuations does not seem to be top of mind to the minions who are racing into the fire in seeming… Read More …