Anybody that works for a company that has significant assets invested in the stock market or large amounts of cash or does themselves knows since the last crash Companies have been hoarding cash, to the point Corporate Balance Sheets held the largest cash reserves in US history. Now, cash invested in cash loses purchasing power because your return is below the rate of inflation. So, Corporate Boards were ok letting their cash sit idle, why?
It is really simple, and libs and Dems will deny, but they sat on that cash waiting for a favorable business environment. Corporate Board's could not trust Obama's plans, like raising the salary needed to not be eligible to work OT to $47,500, the threat of taxes going up, an endless budget deficit, an inability to compete fairly in international markets (see Hayley Davidson as an example), Obama was not seen as business friendly or creating the positive business and spending sentiment, or the confidence to put cash in play. Obama moved jobs outside the US, that is the truth.
I know 3 really good investment advisors that all have access to the top financial advisors on Wall Street, IF they sensed they could tell you the truth about the cash being hoarded without you being offended politically or if you had the stomach for the truth, they would tell you the financial community was waiting for a President that was business friendly and if a Republican got in office, the cash was going to start coming in to the market because there was pent up desire to get idle cash working again if the right President went in to office. Think about it, why would large corporations have a grandma portfolio? That cash is coming in and it is moving the market as predicted, it will not come in all at once but the change in sentiment is a huge factor and if it stays high it will continue to come in. Hate on Trump all you want but he is creating a more positive business environment, after Obama not hard to do. Obama concentrated on social issues and Trump may have already met with more business leaders than Obama did in 8 years. Trump even convinced Apple of all people to bring some manufacturing to the US.
The market will pull back this year, most likely 5%, if economic indicators remain positive the market will advance in 2018.
I know someone who owns a chain of convenience stores in Kentucky, he was sitting tight to see the election, since January he has started his first expansion of new stores in years, he said everyone he knew in business was waiting for Trump to get elected because they knew he would fix the economy.
2 things make an economy rock, you have to have a good economy and fundamentals, and you have to have positive business sentiment and the general public to feel good about their economic future to spend, the psychology in the country right now is improved, it is assisting the recovery. Consumer confidence is growing.
I said this earlier, Trump wins the next election on jobs and the economy alone if things are good, if it is just ok, he will have to have some wins in HC, tax reform, immigration, etc...if the economy is bad he will not win. Of course we might be to the point that some Americans could give a dang about working or saving for retirement and might prefer to have a government that takes care of them cradle to grave and would vote against a President that improved the financial situation for the public.
It is crazy the cash accumulation by corporations over the last 8 years, money talks, people controlling corporate cash did not trust Obama, sorry but it is true.
