For the first time in a LONG time, I feel the Animal Spirits awakening in the markets.
If you aren't aware of the term, it comes from John Maynard Keynes' work. Here is a quote,
"Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic. Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits—a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities"
Like is outlined above, this isn't derived from the mathematical models that I use. It is simply a gut feel. I think it is linked to Trump winning the Presidency and the Republicans having control of the House, the Senate, and having a pick to fill the Supreme Court. Add this to Trump's stated plans to reduce corporate taxes, reduce restrictions/regulations, and bring back overseas capital stashes and I think you can see why the Animal Spirits of Capitalism are beginning to stir.
Time will tell if I am right on this one, but I sure feel the pull of optimism regarding business right now.