The short-lived rally following the election

The stock market’s rally following Trump’s election has stalled. This is seen clearest in the Dow that rocketed higher but has moved sideways, like soldiers at attention, for all of last week. Both the S&P 500 and the Nasdaq Composite moved up to their August and September highs and then stopped – at least for the moment. The recent election did not fix the hollowed out fundamentals that I have been writing about recently.

Here are two additional perspectives. In the following, Jeffrey Snyder explains the utter fecklessness of our central bankers: http://www.alhambrapartners.com/2016/11/18/history-repeats-and-repeats-and-repeats/ . In the following, Tyler Durden shows how stock buybacks have distorted earnings and when GAAP earning are employed the average P/E is over 23 times. This is unbelievably high: http://www.zerohedge.com/news/2016-11-19/difference-between-gaap-and-non-gaap-q3-earnings-dow-jones-was-25.

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