It can be lonely at the top.

ALL TIME HIGHS

Indices continue to hit all time new highs. is this a trend that can still continue? Its been called many things, one being the Trump rally. He has even been reported as taking full credit for this continuation of the uptrend in the financial markets. So why is it continuing to go up, when everyone you listen too is saying it must be the top.

With the tax reforms suggested by Trump I heard it reported as adding about 7% to the stock market. how anyone knows this number as the tax reforms have not yet been issued.

Add in the infrastructure spending to the mix, along with many other reasons to invest in the USA right now, there can certainly be much more to this trend.

Look out for options premium increases, as positions start to lock in profits. See if the  trend might start to reverse, a threat to national security or even to Trump himself.  Who knows if Trump really is upsetting enough people, as continuously reported. Even reports  out this weekend of F15’s scrambled for an unidentified plane failing to response. These are about the only things to stop a  continuation of this trend. Buy into a pull back to get back on the moving train. Not for the faint hearted. however we might just look back and say, if only.

One word of caution is when the tax reforms get announced end of Feb 2017 beginning of March, as a lot has already been priced in, any disappointment will send the markets into at least a corrective move,  of at least 5-10%

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