The DOW hit another new closing all time high yesterday! The markets had their best June in 80 years by percent and best ever by point increase. All of this was predicted months ago!
As we reported, the month of June was the best month of June ever for the stock markets when looking at the amount of points increase in the major indices. It was the best June in 80 years when looking at the percent increase for the DOW.
Yesterday the markets reached their best close ever. The DOW closed at a record all time high of 26,966. It was the first time the DOW closed greater than 26,900 points.
The stock markets are major indications of an economy’s strength. They include valuations based on past and current financial data and company and market data. The markets also include expectations for the future.
The US Markets have been on fire since the 2016 election because President Trump won. On November 8th, 2016, the markets closed at 18,333. On July 3rd the DOW closed at 26,966. That’s a 47% increase in the DOW since the 2016 election!
Now this, one clever market group predicted the market’s recent explosion at the beginning of the year –
Prior to today, there have only been 3 distinct times when NYSE Up Volume accounted for 95% or more of total volume twice in 2 weeks:
Aug '82: S&P 500 was up 31% six months later
Jan '87: Up 21% six months later
Aug-Nov '11: Up ~12% six months later
— SentimenTrader (@sentimentrader) January 4, 2019
Recall that the Fed had stepped in October last year to squash the stock markets. The markets were at all time highs which was too much for the liberal Fed. They immediately raised rates and then did the unbelievable in raising rates again in December.
The markets tanked. In October the markets reached all time highs at 26,828. By Christmas Eve the markets had fallen to 21,792. It appeared that the Fed, totally against its mandate, was on a mission to put the US into a recession. Finally, the markets began to recover.
The markets have risen 25% since Christmas 2018! The team at Sentimen Trader were right!
Yesterday the markets reached their first new all time high for the year. The markets were like rockets set to reach the moon but curtailed by the Fed who was holding the rockets on their launch pads. The ever political Fed which kept rates at zero during the Obama years couldn’t have a billionaire businessman out perform their worshiped community organizer with no economic sense at all.
The markets would be much higher for President Trump if the Fed hadn’t increased rates multiple times whenever a new market milestone was reached.
The Fed kept rates at zero percent for most of Obama’s time in office. Obama’s recovery was the worst since the Great Depression.
As soon as President Trump won the 2016 election, the Fed began to increase rates radically.
If the FED had kept rates at Obama levels we would be seeing much higher markets, a much higher GDP and a reduction in the US debt load. In spite of the Fed’s left leaning political actions to stop the great Trump economy, the economy is on fire. Trump economic team leader Larry Kudlow knows it –
We're killing it on the economy! 🔥 pic.twitter.com/hme0eihP9c
— The White House 45 Archived (@WhiteHouse45) May 3, 2019