Trump at Brink of His Own Bull Mar­ket as Dow Flirts With His­tory

Dow fu­tures have surged 20% since fall­ing right af­ter the elec­tion; traders have poured $45 bil­lion into Amer­i­can stock ETFs and mu­tual funds in four months

The Economic Times - - Markets: Beating Volatility -

New York: The Trump bump keeps get­ting huger.

Con­sec­u­tive gains in the Dow Jones In­dus­trial Av­er­age have left it at the doorstep of his­tory, in­clud­ing a 20 per­cent surge in fu­tures from the early hours of Novem­ber 9 that could be loosely framed as the pres­i­dent’s own bull mar­ket. The 120-year-old mea­sure has set a record on 10 straight days -- the long­est streak since the Ron­ald Rea­gan ad­min­is­tra­tion. Two more would tie it for the long­est ever. How does the fu­ture look when stock prices jump this fast? There’s good and bad news. The last time it hap­pened, in Jan­uary 1987, the Dow dropped 11% over the next year as the mar­ket en­dured one of its worst crashes. The pre­vi­ous oc­cur- rence in March 1964 saw the in­dex climb 9.3% over 12 months.

The Dow’s con­tin­u­ing streak of all-time highs is the long­est since it closed at a record 12 straight times in 1987. If the run got to 13, that would be the long­est ever, ac­cord­ing to Bloomberg data dat­ing back to 1952. Records aside, the Dow’s streak of daily gains is also the long­est in al­most four years and would tie for the long­est in 25 years with a jump Fri­day.

To be sure, the con­tour of the rally has evolved since its first weeks, and not in an al­to­gether good way. Ener-

North March

Dow Fu­tures gy stocks, one of the lead­ing groups of the post-elec­tion surge, have fal­tered, down 2.5% this month. Small­cap shares thought to ben­e­fit most from Trump’s do­mes­tic growth agenda have also slowed, adding just 2.4% in Fe­bru­ary af­ter surg­ing 16% in the month fol­low­ing the vote.

In­vestors are putting more money into eq­ui­ties. Traders have poured $45 bil­lion into Amer­i­can stock ETFs and mu­tual funds in four months af­ter yank­ing money in seven of the past nine years, data com­piled by In­vest­ment Com­pany In­sti­tute and Bloomberg show.

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