The Dow soared non-stop (along with a VIX crash), seemingly on the heels of Senate Democrats' $1 trillion infrastructure plan...(NOTE - VIX was crushed into the close and stocks also fell!)
On the surface, key Dow component Johnson & Johnson reported strong earnings, with EPS of $1.58 coming stronger than the $1.56 consensus expectation, despite revenue of $1.81BN missing consensus of $18.28BN. Among the key notables in the earnings report was the company's announcement it was in a process to evaluate potential strategic options for the Johnson & Johnson Diabetes Care Companies, specifically LifeScan, Animas, and Calibra. Such option "may include the formation of operating partnerships, joint ventures or strategic alliances, a sale of the businesses."
Was it really that easy - Buy The Election (hope), Sell The Inauguration (reality)?...
The Dow continues to cling to unchanged for 2017 (small caps red)...
Since the inauguration...
Authored by Robert Shiller, originally posted op-ed at The Guardian,
Speculative markets have always been vulnerable to illusion. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of the illusion are difficult to predict.
In the US, two illusions have been important recently in financial markets.
While US stocks closed near session, and all time highs on Friday, the first green close on inauguration day in over 50 years, Monday has seen a modest case of buyer's remorse, with European stocks sliding, Asian shares mixed and U.S.