'Trump Slump' ahead for US stocks in 2018

Running out of pro-growth policies, Trump may not have more rabbits to pull out of his market magician hat

Published Fri, Dec 29, 2017 · 09:50 PM

IF 2017 was the year of the Trump Bump for US stocks, then 2018 could well be the year of the Trump Slump.

The Dow Jones Industrial Average has risen roughly 25 per cent for this year, and about 35 per cent since US President Donald Trump's election victory.

Seldom has a president been so associated with a rally. American opinion may be divided on Mr Trump but the stock market has returned his embrace - so far.

For those who watch charts, there is a sense that something has to give. At nearly nine years of age, the bull market in stocks is already the second longest in history.

It is a spring chicken, however, next to the bull market in Treasury bonds, wh…

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