The strong push up in the markets has everything to do with the market narrative. That's the overarching theme that is the most prevalent driver of the long-term stock price trend.
I know – broken record. I hear you saying, "D.R. – you've talked to us about the market narrative so many times…"
I do it for one reason: money.
If we have a clear understanding of the market narrative, we can make money, and plenty of it.
Since early November 2016, the Trump Growth Narrative has been the prevailing market driver. The three legs of this growth narrative are still – and have been since our original discussions – reduced taxes, regulatory reform, and infrastructure spending.
And right now, the most important driver out of this three-legged stool is the recently passed tax reform. I believe that the effects of tax reform have not yet been fully priced in by the markets.