The Trump Rally

The Trump Rally has been so spectacular that it’s hard to believe it started from such a deep hole on election night. Recall that the Dow futures were down by nearly 900 points when it became apparent early that evening that Trump actually had a chance of winning. In retrospect we can see that the panic selling was due not so much to fear that a Trump presidency would be bad for the U.S. economy, but to the shocking realization that the pollsters, pundits, elitists and editorialists had gotten it profoundly wrong.  Now, it’s hardly a stretch to suggest that if Hillary had won, the outcome for stocks would have been the exact opposite: a huge rally on election night, followed by a 2000-point slide in the Dow. But whatever investors may have feared about Trump, his appointments have already provided a dramatic and manifestly positive shift away from the Hope-&-Change fraud perpetrated by Obama.  For one, the nanny state and the crushing regulation burden we have all lived under is about to give way to a freer sort of capitalism. And while the bureaucracies that have enforced those regulations may have come to seem intractable, it is clear that Trump’s cabinet appointees possess both the will and the experience to dislodge the bureaucrats, and to replace them with administrators and workers more inclined to serve the public than to rule it.  It is entirely predictable that the political left will continue to resist even the slightest change with all its might. Fortunately, they lack the votes to do much more than kick and scream. In the meantime, for a statistical look at the power of the Trump Rally, click here to see what the five best and worst performing S&P stocks have done before and after the election: S&P 500;  S&P Mid-Cap 400; and S&P Small-Cap 600.