Jared Dillian, the former head of ETF Trading for Lehman Brothers and author of the free newsletter The 10th Man believes the stock market hasn’t finished its run quite yet.
“I don’t think we’re into bubble territory yet,” says Dillian. “Now, I’ve been trading since 1999, so I’ve seen two legitimate bubbles so far: I saw the dot-com bubble and the housing bubble. And, we’re not in bubble territory. Stocks are expensive… they’re overbought, they’re overvalued. But overvalued, overbought stocks can continue to go up for a really long time. They could go up 20, 30, 40 percent, no problem.”
Dillian also explains the huge positive market reaction to President Trump’s address to a joint session of Congress.
“The market is excited that we got good Trump instead of bad Trump,” shares Dillian, “and bad Trump is the Trump that’s really focused on immigration, focused on this travel ban, focused on a lot of this populist stuff. And good Trump is the Trump that is not focused on these things and is hopefully focused on the economy.”
Despite the market being up, there are huge questions about how President Trump is going to finesse his economic plans through Congress. Find out the details by watching Dillian’s interview with RiskHedge’s Jonathan Roth above.