U.S. Stocks Riding a Bull Market in Corruption

Tim Mullaney writes for Market Watch:

I’m an American, full of pride for President-elect Donald Trump and his big, big, 10% stock market rally since the election!

Now imagine my pride if that had actually happened. Or if the 5% gain in the S&P 500  that has happened, or even the 8% climb in the narrower Dow Jones Industrial Average — which has failed for the 15th day to gain the last 250 points needed to cross 20,000 — were based on fundamentals.

Instead, this recent is rooted mostly in corruption now, and the promise of corruption later. And a rally built on corruption is bound to fail. Here’s why:

Financial stocks are responsible for much of the U.S. market’s recent move, and the rally in financials is rooted in hopes for government deregulation of the industry.

READ MORE…

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