Most major U.S. stock indices are at new all-time highs in expectations of economic stimulus, fewer business regulations, and lower corporate taxes. Layer on hundreds of billions in potentially repatriated profits, more profitable big banks, and significantly increased tech spending, and you’ve got the makings of a relentlessly up stock market.
At this point we’re almost vaulting over the wall of worry of higher interest rates, possible tariff wars, potentially dramatic changes in healthcare, and a political environment that seems nearly unpredictable.
The market is showing no signs of letting up, at least at this point. Although there seems to be nothing on the horizon to stop this powerful move, it probably is a good time to look at reducing under performing positions and taking some partial profits on big winners. Incremental is the by word, though, as trends have a way of lasting longer than almost anyone expects.