"PRACTICAL WORLD" - 'TRUE NEWS' MAGAZINE.

"PRACTICAL WORLD" - 'TRUE NEWS' MAGAZINE.
Pratica Radio said: 'Just True News '

Practical World True News Magazine

#Business, #Donald_President : Listen to the tale of Wall Street on Trump age !

Stock market’s velocity after Trump has Wall Street talking Dow 20,000

Do I hear 20,000? 21,000? That’st the subject Wall Street investors are starting to consider after postelection ebullience has stretched equity markets deeper into the record books since Nov. 8.



The Dow Jones Industrial Average DJIA, +0.72%  registered back-to-back-to-back record closes Friday — it has scored 14 record finishes since Donald Trump’s election. The blue-chip gauge, as of Friday, was less than 250 points away from hitting the psychologically significant level of 20,000.
Other stock benchmarks, including the Nasdaq Composite Index COMP, +0.50% and Russell 2000 index RUT, +0.12% finished at all-time highs Friday.

Assuming that the indexes continue to lurch forward into the next week or two, that puts the gauge on pace to log the fastest 1,000-point rally since the Dow moved from 10,000 to 11,000 in from March 29, 1999, to May 3, 1999 — a 24-day trading day span, according to Dow Jones data.
The Dow closed above 19,000 on Nov. 22 and took 483 trading days to span the 1,000-point bridge.
Trading sessions between 1000-point milestonesDow’s 1000-point milestoneDate of first close above 1000-milestone
2411,0005/3/1999
5914,0007/19/2007
857,0002/13/1997
1058,0007/16/1997
10818,00012/4/2014
12713,0004/25/2007
13916,00011/21/2013
15317,0007/3/2014
1829,0004/6/1998
1895,00011/21/1995
2266,00010/14/1996
24610,0003/29/1999
48319,00011/22/2016
9754,0002/23/1995
1,0803,0004/17/1991
1,46015,0005/7/2013
1,87912,00010/19/2006
3,5732,0001/08/1987
21,6521,00011/14/1972
The broad-based rally has been supported by the expectation that Trump will unleash a raft of pro-business policies, including a roll back of regulations, tax cuts and fiscal spending. Signs that the market is already on a solid economic footing relative to other economies across the globe and comparatively better quarterly results from U.S. corporations isn’t hurting.
Investors appear to be buying in to those prospects, which are far from a reality. Right now, however, hope trumps fear.

On Friday, a gauge of confidence in the economy, the University of Michigan’s consumer-sentiment gauge, surged in early December by 4.5% to 98.0, one-tenth of a percent from a cycle high touched in 2015, which was the highest since 2004.
Of course, there are a plethora of signs that the market is getting overheated. Wall Street’s fear gauge, the CBOE Volatility Index VIX, -7.04% a measure of the market’s expectation of volatility, is hovering around 12, a level that suggests investors may be growing complacent and are ill-prepared for a shock to the system. Levels above 12 tend to imply the expectation for even more volatility. At levels above 20, watch out!

And some argue that on a rolling basis, stocks are getting pricey and are due for a reversal.
The CAPE ratio, created by Nobel laureate economist Robert Shiller, compares stock prices with earnings over the past 10 years. It is showing that the S&P 500, which closed at a record Friday, is trading around 28 times.
By that measure, the stock market is now flashing a bright red warning sign, implying that a crash may be imminent in the broad-market S&P 500 indexSPX, +0.59%

But even Shiller, who appeared on CNBC on Thursday to discuss his CAPE ratio, said this metric may not be able to account for the euphoria Trump has sparked. He views the real estate mogul as an unprecedented candidate whose potential policy impact on businesses could elude models.
“We just got a new president who wants to cut corporate-profit taxes and he wants to ease regulations. My own indicators are a little bit less effective in this environment,” Shiller said.
Share on Google Plus

About Pratica Radio

We play blues,country,jazz,lounge,rock,
    Blogger Comment
    Facebook Comment

0 comments:

Post a Comment