Posted By RichC on February 21, 2017
Once again the US Financial market rose to new record highs on Tuesday as the Trump rally continues to encourage investment and hope for earning, regulation reductions and tax relief. Likely those three biggies will either get done and satisfy investors or disappoint with a delay and trigger a sell-off. Who knows if congress can get a satisfactory bill or two to President Donald Trump’s desk for signing in the near future or if bickering and dissentions within the Republican party will ruin the party?
Financial Visualizations www.finviz.com
“Companies didn’t all of a sudden become much more profitable,” said Ron Weiner, managing director of RDM Financial Group at wealth management firm HighTower Advisors. “The markets are filled with optimism for a number of proposals.”
Still, some analysts warn that stocks have become pricey relative to their historical averages. The 12-month forward price-to-earnings ratio for the S&P 500 rose Friday to its highest level since 2004, according to FactSet.
“The ascent we’ve seen since election day is just incredible,” said Lindsey Bell, investment strategist at CFRA Research. “It makes us a little nervous…we think a lot of the move is based on euphoria and hope surrounding [President Donald Trump’s] policies, especially tax reform,” she said.