December 2016 Intelligent Investor Opening Statement

Opening Statement from the December 2016 Intelligent Investor

Originally published on December 8, 2016 (pre-market release)

One month ago the US stock market was hovering around technically worrisome levels after having gradually declined for several days consecutively.

Even after Hillary Clinton was once again cleared by the FBI of wrongdoing in the email investigation, the one-day rally prior to the election was insufficient to alter the negative sentiment that had formed. And when the election began to point to Donald Trump as the winner, the Dow experienced an eye-popping collapse in the futures market during the early morning hours of November 9. At one point the e-mini Dow Jones futures were down by more than 900 points.

Since that time the Dow Jones Industrial Average has soared by more than 2100 points, largely on no real news. In fact, one could argue the market should have sold off after Treasury yields soared.

Last month we stated that the US stock market was now being driven by