Analyst says Trump’s election having ‘sugar high’ effect on stocks

A financial analyst from Bury Financial Group says the stock market likes political certainty

Stock market
(AP Photo/Richard Drew)

YOUNGSTOWN, Ohio (WKBN) – It seems that the stocks are now setting another record high every day, but how long is that trend going to last?

Todd Bury with Bury Financial Group says there’s been a “sugar high” since Donald Trump won the presidential election.

“This isn’t going to happen for the next year or two years.”

The Dow is up 7 percent since Election Day. Trump’s win has meant a $2 trillion jump in the value of global equities, according to Bloomberg.

The Dow has gained over 4,000 points since its low in February.

“I just looked at something today and it said Dow 36,000 in five years,” Bury said.

That would be a robust climb, but not every stock or market segment has participated in the rally so far.

“Healthcare, for example, have pulled back,” Bury said. “There’s some great stocks, since the election, that are down. They pay great dividend, they have good earnings, but they’re down.”

He says the market likes the political certainty. Business owners feel it will mean less regulation and taxes, so they can go out and hire.

Looking at bull and bear market swings from the past, Bury says that no one knows what the future holds. That’s why it’s important to know what could spoil the rally.

“I think that the next big event on the horizon is what the Federal Reserve does, and then another thing is to make sure our government doesn’t get shut down.”

The House passed a measure Thursday to fund the government, but it still needs Senate and presidential approval.

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