No. of Recommendations: 7
I too noticed a nearly UNANIMOUS bullish outlook the past days. If I recall correctly, during Trump 1.0, there was all sorts of skeptism, reistance and and doubt. There was not a unified consensus that Trump would grow the economy. (the economy is strong at the moment by all quantitative measures) The wall of worry was strong and prominent in the rally of 2016. Very different than the cheerleading of Wall St now.
One could argue there has been a wall of worry under Biden and look how the market has performed. No one will mention this but SP500 gained 82% under Biden to 70% under Trump (despite the poor sentiment, fearmongering about socialism, and calls of an unfriendly business environment)
In addition, SP500 was at ca. 16X earnings in 2016, as opposed to 22+X earnings. Two completely different valuation landscapes.
https://yardeni.com/charts/stock-market-p-e-ratios...Sure the tax breaks will increase earnings and degregulation can juice the economy, but it seems this time around there is a very different and euphoric vibe to nearly all market analysts.
One final point. Tarriffs were put in place in 2018, not 2016. The chart from 2016-2018 is much different than 2018-2020.
