Last week, we wrote stocks had risen close to the high they reached last April. Stocks rose partly in anticipation of a Republican mid-term election victory. Now, the day after Republicans delivered Wall Street a divided government, stocks have passed their April high, and are higher then they have been anytime since the 2008 financial crash. The Fox Index measures the gap between the current market and a healthy close for the three major indexes: 12,000 for the Dow, 1,300 for the S&P 500, and 2,500 for the NASDAQ, or a total of 15,800. The Index, which reached -927 April 15, is now at -847 (see chart)—with the NASDAQ at 2,540, actually above its minimum healthy level. While it’s uncertain the Republican political victory can deliver the economic gains Wall Street hopes for, the GOP will be able to block Democrats from enacting further anti-business initiatives.
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