While hopes of faster growth as a result of proposed business-friendly policies from the new administration are a large part of the story, an actual recent improvement in fundamentals (corporate earnings and economic data) should not be overlooked. The earnings recession is now in the rear-view mirror, which helps to provide an underpinning for the equity market. As stock prices surge to previously unseen levels, investors are starting to pay attention to elevated valuations.
Market Flash Report - March 2017
The stock market rally continued more or less unabated in February, with U.S. stocks hitting new record highs on an almost daily basis.