The Trump bump keeps getting huger.
Consecutive gains in the
Dow Jones Industrial Average have left it at the doorstep of history,
including a 20 percent surge in futures from the early hours of Nov. 9
that could be loosely framed as the president’s own bull market. The
120-year-old measure has set a record on 10 straight days -- the longest
streak since the Ronald Reagan administration. Two more would tie it
for the longest ever.
How
does the future look when stock prices jump this fast? There’s good and
bad news. The last time it happened, in January 1987, the Dow dropped
11 percent over the next year as the market endured one of its worst
crashes. The previous occurrence in March 1964 saw the index climb 9.3
percent over 12 months.
The Dow’s continuing streak of all-time highs is the longest
since it closed at a record 12 straight times in 1987. If the run got to
13, that would be the longest ever, according to Bloomberg data dating
back to 1952. Records aside, the Dow’s streak of daily gains is also the
longest in almost four years and would tie for the longest in 25 years
with a jump Friday.
To be sure, the contour of the rally has evolved since
its first weeks, and not in an altogether good way. Energy stocks, one
of the leading groups of the post-election surge, have faltered, down
2.5 percent this month. Small-cap shares thought to benefit most from
Trump’s domestic growth agenda have also slowed, adding just 2.4 percent
in February after surging 16 percent in the month following the vote.Investors
are putting more money into equities. Traders have poured $45 billion
into American stock ETFs and mutual funds in four months after yanking
money in seven of the past nine years, data compiled by Investment
Company Institute and Bloomberg show.
