The stock market has risen about 9 percent since the election of Donald Trump with near a $2 trillion increase in wealth. Is this the start of a big bull market rally?
Investors are rightly euphoric over President Trump’s pro-business/pro-investor policies. But Wall Street is coming to grips with the political reality that gridlock is the default position in Washington. Democrats have announced they are preparing an all-out defense against Trumpism as if they were trying to repel the Normandy Invasion. So the market has been jittery in recent weeks, rising on Trump successes (such as the regulation roll back) and falling into despair when his economic agenda seems bogged down or he pursues bearish policies like tariffs on Mexico.
To get a sense of where the market is headed, it’s wise to look at the historical parallel of the early years of another presidential disruptor: President Ronald Reagan. Mr. Trump can learn from Mr. Reagan’s mistakes and successes.