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3/01/2017 3:44 pm  #1


Dow breaks through 21,000, spikes 300 points

Dow breaks through 21,000, spikes 300 points as Wall Street cheers Trump's speech

http://www.cnbc.com/2017/03/01/us-markets.html

U.S. equities traded surged to all-time highs Wednesday, with the Dow Jones industrial average breaking above 21,000 for the first time, on the back of President Donald Trump's speech to Congress.

"A lot of people say this is euphoria. But doesn't feel like it," said Eddie Perkin, chief equity investment officer at Eaton Vance. "It feels like people are reluctantly buying stocks.""That's why I'm a little wary," he said. 

Trump's speech, which was delivered Tuesday night, was widely praised for its positive tone but lacked specifics about tax reform and deregulation, two key components of the market's postelection rally."The major positive from the speech is he delivered on his 'America first' message, but he did so in a positive and uniting way," said Zhiwei Ren, portfolio manager at Penn Mutual Asset Management. "If his message of 'America first' can succeed, this could be positive for the economy" in the near term. 

DJ Industrial Average 21,136.49  324.25 (1.56%)    1543hrs.


When angry, count ten before you speak, if very angry, an hundred.
 Thomas Jefferson

 
 

3/01/2017 4:04 pm  #2


Re: Dow breaks through 21,000, spikes 300 points

Hey I'm enjoying it.
I do wonder how many out of work coal miners have stock portfolios, though.


“While the framers of the Constitution foresaw the possibility of a tyrannical president, they never let their imaginations be darkened by the possibility of a compliant Congress.”
 

3/01/2017 4:56 pm  #3


Re: Dow breaks through 21,000, spikes 300 points

My own portfolio hit it's 52 week low this week one year ago this week.

Since then, it's been consistently going up. About 30%. 

I'm happy but also nervous because I feel like I need to sell some stuff off because it just feels like we're going to see a major pullback soon.

I am a bug believer that a strong market means people will also invest outside of the market, perhaps in their own businesses or maybe in consumer spending with a big purchase like a car or a new house. That does help those in the factories and service industries. 

Anyway, I'm going to enjoy this while it lasts while knowing that Trump is a wildcard who can quickly send the markets into a downturn, as well as the natural ebb and flow of the markets mean we're primed for a pullback.


I think you're going to see a lot of different United States of America over the next three, four, or eight years. - President Donald J. Trump
 

3/01/2017 5:27 pm  #4


Re: Dow breaks through 21,000, spikes 300 points

If the corporate tax cut plan gets held up,,,, look out.


“While the framers of the Constitution foresaw the possibility of a tyrannical president, they never let their imaginations be darkened by the possibility of a compliant Congress.”
 

3/01/2017 8:31 pm  #5


Re: Dow breaks through 21,000, spikes 300 points

It is ALL speculation thus far. 

I am NOT complaining, but merely warning that we still have to see something concrete to happen before we can really asses where we are. There are a LOT of problems on the horizons and NOT just of Trump's making. But at this point, enjoy it, but don't plant that it will remain as it has been this past couple of months. 

 


"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
 
 

3/02/2017 10:19 am  #6


Re: Dow breaks through 21,000, spikes 300 points

It is ALL speculation thus far.

I'm not sure I agree with this. If you look back at earnings from the S&P 500, we've had a couple of years with strong returns from America's largest businesses. 

If you remember during the early and middle parts of Obama's second term, even as the market was rising and growth was ocurring, we'd hear a lot of business reporters say that there was a lot of "money on the sidelines" I think what we're seeing now is that money being invested.

In terms of the future, of course it's all speculation. But I don't think institutional investors would be putting massive amounts of $$ into the market if they didn't see the opportunity for profit.


I think you're going to see a lot of different United States of America over the next three, four, or eight years. - President Donald J. Trump
 

3/02/2017 10:49 am  #7


Re: Dow breaks through 21,000, spikes 300 points

TheLagerLad wrote:

It is ALL speculation thus far.

I'm not sure I agree with this. If you look back at earnings from the S&P 500, we've had a couple of years with strong returns from America's largest businesses. 

If you remember during the early and middle parts of Obama's second term, even as the market was rising and growth was ocurring, we'd hear a lot of business reporters say that there was a lot of "money on the sidelines" I think what we're seeing now is that money being invested.

In terms of the future, of course it's all speculation. But I don't think institutional investors would be putting massive amounts of $$ into the market if they didn't see the opportunity for profit.

My point was that NO legislation has yet passed that will enable the corporations to profit (ie-lower taxes and financial regulations) and bolster their earnings. I don't see anything concrete YET to account for the bubble. I am NOT complaining because a lot of my money for retirement IS tied to the market. It would be nice if it continues for a LOT of people, me including. 

I DO see some rough sledding in terms of getting the massive tax cuts and spending increases through and that includes many R-tribers who are fiscal conservatives. The only place they can really slash to strike a balance is social programs such as Medicare and Medicaid. It they tamper with especially Medicare -  it will be at their own political peril. 

Also a general warning is that the S&P P/E (Price/Earnings) has risen rather quickly. We are not in as bad a shape as some other times but latest is about 27 and the historical mean is approx. 14. IF some promised cuts do NOT materialize and it doesn't boost net earnings as anticipated then there could be a large correction coming. But for now ride the wave unless you have 20/20 foresight. 


 

Last edited by tennyson (3/02/2017 10:58 am)


"Do not confuse motion and progress, A rocking horse keeps moving but does not make any progress"
 
 

3/02/2017 11:31 am  #8


Re: Dow breaks through 21,000, spikes 300 points

It is ALL speculation thus far.

While things the president says have some short term effect on markets, and things he does may also have a medium term effect, the long term outcome of the direction of financial markets is determined by the stability and financial health of the businesses contained in those market indexes.

And, for every financial advisor that says "A" is going to happen, you can find another one certain that "B" is going to happen.

Last edited by Rongone (3/02/2017 11:52 am)

 

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