U.S., European Stocks Rise Despite Looming Risks

Summary

• Investors in US stocks are clearly focusing on positive catalysts such as the potential for significant deregulation under the incoming Trump administration.
• We also saw stocks in Europe ignore fears and perform well last week despite some challenging developments.
• I think optimism in the face of challenges is often justified, especially when monetary policy is becoming supportive.

DKosig

US stocks continued to rally last week, including a strong showing from small caps,¹ despite growing worries from individual investors. So what’s prompting stocks to climb the proverbial “wall of worry?” Many investors in US stocks are clearly focusing on