Shows more confidence in Trump than in Hillary.
U.S. stocks rose to fresh highs Thursday, extending gains after their best day since the presidential election.
Investors have been buying stocks and selling bonds, betting that the Trump administration will usher in tax cuts, deregulation and fiscal stimulus, which they believe will support growth and inflation in the world’s largest economy.
The Dow Jones Industrial Average gained 65 points, or 0.3%, at 19615, after it added nearly 300 points Wednesday. The S&P 500 rose 0.2% and the Nasdaq Composite added 0.4%.
Via the WSJ.
This is why it’s so classic that a stock market performs better with a Democrat in the White House than a Republican. Investors think that a Democrat will tank the economy so they sell off before inauguration. Then when a Republican is subsequently elected they bid up the stock market to unrealistic highs. Reality then sets in. Democrats aren’t as bad as they thought, Republicans aren’t as good as they thought. The one glaring exception is the Great Depression. Republicans had Congress and the White House a decade before the collapse and Hoover had 3+ years to right the ship and he failed.