The US stock market has been rallying to new highs over the past few weeks as if there is some new reckoning in the markets to " Make the stock market great again ". No I didn't say this. The market expectations of the new administration unveiling policies to boost the US economic growth is the main driver behind this rally. All the prior market forecasts about the market behavior post the elections, depending upon who gets elected, have been proven to be totally wrong. Just because the stock indices are making new highs doesn't mean the market is overvalued or there is some sort of a bubble. This is certainly a fully priced market where there are no bargains to be found for the most part. There could be some pullback before the end of the year or early next year due to the magnitude of the rally in a very short time. The one thing I can definitely say about this sudden rally is that it should not make us alter our investment strategies in any way if we have decades of time horizon ahead of us.
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