A year that started with a bust sure does look like it will end with a bang. The major indices have been in a party mode since Election Day while the Russell 2000 specifically has been the life of the party.
The gains have been extraordinary. Since November 8, the Nasdaq Composite is up 4.4%, the S&P 500 is up 5.1%, the Dow Jones Industrial Average is up 7.1%, the S&P Midcap 400 Index is up 12%, and the Russell 2000 is up 15.7%.
It is a move that few, if any, people saw coming, which is exactly why it came.
Can it continue? No one can say for sure, yet the prospects for a continuation look good on paper.
There are multiple factors working in the stock market’s favor right now and one nagging factor working against a further extension. Nobody likes a nag, so let’s get that explanation out of the way first.
Complacency is the nagging factor.
It seems that everyone went from fearing the election result to now cheering the unfulfilled prospects of pro-growth policies discussed in its wake.
This post was published at FinancialSense on 12/12/2016.