Tuesday, December 27, 2016

AMERICA GREAT AGAIN: Americans' optimism that stocks will rise just exploded higher in a way not seen since 1998

President-elect Donald Trump’s transition continues to go smoothly. Better than smoothly. Confidently. More than confidently. Transcendently.

And to top it all off, the Dow is up 9 percent since the election, while economic-sensitive small-caps have jumped nearly 16 percent. These are signs of Trump confidence.

Hard-nosed investment manager Ray Dalio, founder of Bridgewater Associates and a non-political guy, expects the Trump years to be as transformational as the Reagan-Thatcher years. Dalio says the Trump era could “ignite animal spirits” and “shift the environment from one that makes profit-makers villains with limited power to one that makes them heroes with significant power.”

That’s as good a summary as I have found.

Since the election, I have argued that the Barack Obama/Hillary Clinton war against business will come to an end, and that America will once again reward success, not punish it. And while the Left has demonized Trump’s cabinet appointees as a terrible group of successful business people, free-market capitalists such as myself regard this group as very good indeed....