The stock market dropped from August through October and signaled that the markets wanted a Trump. They got what they wanted, but what’s next?
Late on Election Day, when it looked like Trump was going to win, the Dow futures market took a steep nose-dive dropping close to 800 points.
That loss was almost completely gone by morning, and when the stock market opened the next day, it started to rise.
On Monday, almost two weeks from the election, the stocks hit all time highs. The Dow Jones industrial average broke the 19,000 barrier for the first time ever.
The only thing the markets are really responding to is Trump becoming president. The dollar is even up, but how long can this last?
This week is a holiday week and some of the busiest shopping days. Then we get into December and we start getting economic numbers in, then things could change.
On the week of December 11th, the Federal Reserve board of Governors will meet and decide if they are going to institute a rate hike.
Last December the Fed increased interest rates by a $0.25 and the markets tanked. We began 2016 with the worst start of a new year for the stock market in history.
If the Feds decide to raise rates we could see a similar sell off, but then if Trump is able to push through some of his economic plans, we could see the market bounce back up.
We are at an all time high in the stock market right now fueled by the printing of money from the Fed during the quantitative easing programs, and the speculation that Trump will be good for the economy.
At some point the house of cards will fall, and what Trump does to help correct the markets will be a true test of his presidency. Obama continued the same policies as George Bush and Bill Clinton. Trump was elected to change those policies, but we’ll see if it is as easy as Trump claimed during the election.
Do you think the stock market will continue to go up or will we have a major sell off to start the year? Let us know your thoughts in the comments below.