Do fundamental shifts create or negate bubbles? We’ve already met or exceeded upside predictions for many leading market analysts. The Great Trump Hope rally has been supported by talk of fundamental change with lower corporate taxes, less restrictive regulation, and a clearly pro-domestic business agenda.
It’s really a pro-market agenda and we haven’t had an administrative agenda in history to really measure this against. We’ve had pro-business administrations but this feels more pro-market. Let’s make the Dow30 great again.
Big moves always overshoot and we have speculators to jump in and try to put a cap on them. Let them do their work. Talk of a bubble is pre-mature. Will a bubble emerge? They always do but upside momentum is an incredibly powerful force. Will we have a bubble-like crash? In our days of flash crashes; so what? We’ll recover in days if not hours or minutes.