Can Trump Deliver on his Promises?

Dow Jones hit an all time high after Trump won the Presidential elections. The index reached just five points shy of 20,000 and is currently trading at 19,852. The skyrocket rally occured due to the high expectations of market participants that Trump will actually make America great again. The reality, however, does not have anything to do with the latest rally in US stocks. Earning reports are not that impressive and job growth is at the same place as pre-election times.

Inflated expectations allowed the US companies to improve their earnings performance, but eventually reality may not be able to keep up with expectations. After a twilight period the price trend may be reversed. If Trump does not manage to sustain the rapid growth in US equities prices, the problems will surface and the earnings will collapse.

US companies and hedge funds are optimistic about the Trump presidency as he has surrounded himself with the intellectual and financial elite. In light of this, all the great minds that run the capitalist world are gathered under one roof towards one common goal - the wellbeing of the United States. All of this suggests that what we are about to see will be game changing.

Chart: DJ30/USD D1