The media story so far is that since the TRUMP win, managers have been rotating their portfolios to represent TRUMP trends (lower taxes, go easy on the 'too big to fail' Wall Street banks, more jobs for Americans). Prior the election the stock market was set up for a HILLARY win, due to more of the same, status quo, FED support. But....
Using Richard Ney logic, the short answer is, stocks were always going up and the election results do not matter nor would a higher 10 yr bond or lackluster fundamentals. The real story is the market makers have been accumulating stocking inventory for a year, and they must mark up prices to sell their inventory at a higher level to the uniformed (public) to secure profits. Positive stories are fed to the media to promote the move as acceptable. POINT: Stock market moves are sourced from the inventory demands of the most advanced professionals.
The Dow Jones chart below shows the CAUSE and EFFECT in play, Dow 20,000 or 21,000 will soon to be in the media headlines.
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