The NY Stock market DOW Jones average came close to a record close above 20000 yesterday, but didn't quite make it. The post election bounce has been good for the market as businesses and investors like what they hear from the Trump transition team. They like the prospect of lower taxes, even the possibility of a lower corporate tax rate. They like to hear that federal regulations may become less onerous and fewer in number. Perhaps some agencies will be removed entirely. Wouldn't that be a boost to everybody?
But, the market has been a little wary of jumping ahead of itself. International markets keep looking to China and its handling of the yuan as the government attempts to keep it from falling further against a surging dollar. The issue of the UK exit from the EU(Brexit) has roiled markets in Europe and America, while the ongoing conflict in Syria keeps all eyes on the Middle East. Woe the market maker who neglects to factor in the action of Saudi Arabia and Yemen in their calculus of events in that region.
Then heap Ukraine and Crimea into the mix and one can better understand the reluctance of institutional investors to throw funds at any stock or bond in this market. Nobody has a crystal ball that affords a forward view of events. And don't forget the largest country in the world, Russya, and its madcap leader, the former FSB agent, Putin.
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