CNBC's Jim Cramer said the post-election stock-market rally can be attributed to President-elect Donald Trump 's vows coming to fruition.
"This is a remarkable rally because it's based on everything that this guy says — like anything that Trump said is going to come true." Cramer said told CNBC. "And I think that's because people just feel like the Republican Party's going to fall in line."
Major U.S. equity indexes have spiked since Trump's victory over Hillary Clinton in the Nov. 8 election. The Russell 2000 has notched its longest daily winning streak since 1996.
Cramer said some economists predict the Trump rally won't last much longer — but he took a more optimistic view, saying economists need a more solid reason for why it won't last, CNBC reported.
"Everybody said two things. One is, this Trump rally can't last. And second, when I ask why not, they say, I don't know. It can't last," he said. "You need something which says it can't last because of 'X.'"
"I don't think it is over. It is just morphing into other areas not yet picked over, which is what happens when much of the S&P 500 has jaunted higher and the Russell 2000 … goes up for an astounding 2 weeks in a row," the "Mad Money" host said.
Cramer noted various positives in the stock market right now and told investors to take note on a day like Monday, when the Trump rally slowed down.
"When you get a head of steam like this going into the last month of the year, you typically end up with a rally that will gain fuel because money managers won't look as negative as they may sound when they are off the desk," Cramer said.
"In short, there is just too much smoke. There will be fire," Cramer said.
While Cramer did acknowledge that stocks are overbought, he thinks that could be a good sign. It means there is real money pouring into stocks.
Meanwhile, Charles Gasparino, author and Fox Business Network senior correspondent, says the stock market’s rise to record highs after Trump’s presidential victory shows that investors are optimistic that the economy will improve as President Barack Obama leaves office.
“His promise to cut both corporate taxes and red tape will translate into higher corporate profits so businesses can expand and create jobs,” Gasparino writes in the New York Post. “Real unemployment can finally decline not because people are dropping out of the workforce but because they’re actually working again.”
Trump will come into office with Republicans controlling the Senate and House of Representatives, making economic reforms a realistic possibility instead of prolonged gridlock. Under President Obama, the U.S. economy never exceeded 3 percent yearly growth for the first time since World War II.
“With the GOP controlling the House as well as the Senate, traders see real economic growth on the horizon, not just a Fed-induced stock-market bubble where interest rates are so low there’s no other place to put your money,” Gasparino says.
(Newsmax wire services contributed to this report).
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