Yesterday was an exciting day in stock market history as the Dow Jones Industrial Average set another new record, breaking the 20,000 mark for the first time. It certainly has come a long way when you look at this chart that stretches back to the 1970s …
I am old enough to remember when it broke 1,000 in November of 1980, as I recall reading about it in the morning paper in the library at my high school. It was actually the second time that it broke 1,000 – it originally hit the milestone in 1972, but slumped when the economic malaise of that decade set in.
When it hit the mark in November of 1980, it was credited as the “Reagan Rally”. He had been elected weeks earlier and investors were said to view his election as positive for stock market valuation.
This article on USA Today looks at the run of stock market growth that has happened since last November’s election of Donald Trump. It declares it one of the strongest ‘Honeymoon Periods’ that the market has seen after the election of a new President.
Trump has only been in office a few days so far. What matters is what happens over the coming weeks, months, and years. On the first day of trading this year, my friend Russ and I bet a beer on where the market will sit on Independence Day – about six months into the Trump administration.
Our over / under number is +4.5% growth, which equates to DJIA at 20,600.
What would you predict? Would you take the over or the under?
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