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Globe/wire say TSX on board for "Trump Trade"

2016-12-09 08:16 ET - In the News

The Globe and Mail reports in its Friday edition that Donald Trump is being credited for ending two years of stock-market paralysis, with more than $1-trillion added to shares values since election day and the Dow looking bound for 20,000. A Bloomberg dispatch to The Globe says that both the Dow and S&P 500 jumped to fresh records Wednesday, joined by transportation companies and small caps, while banks traded at eight-year highs. The S&P/TSX composite also rose, and is now only about 300 points away from a record close. Wall Street gurus, more pessimistic than any time since 2013 as recently as September, are suddenly falling over themselves to push up targets. The average call of bank soothsayers is for the S&P 500 to rally 3.4 per cent next year, with strategists at JPMorgan and BMO calling for even bigger gains. The Trump rally is now the biggest for any new president since Ronald Reagan. "What we didn't expect was the speed and the magnitude of the so-called 'Trump Trade,'" said Doug Ramsey, chief investment officer at Leuthold Group. "The consensus hope, which we share, is that tax reform and regulatory roll-back will extend and maybe enliven an economic recovery that's already long in the tooth."

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