Stocks have shaken off trade barriers, disruptions in the public sector, geopolitical ultimatums, a threat to U.S. AI supremacy, and a reduction in market expectations for rate cuts.

The bond market has shaken off hotter inflation data, and growing evidence that significant amounts of the massive deficit spending of the past several years may have been economically unproductive because of waste, fraud and/or corruption (very publicly detailed by DOGE).

So, why has there been little-to-no pain in markets?

Is the market uncharacteristically seeing the big picture, and pricing it in?

That big picture:  Bringing the wrecking ball to DC, unshackling the private sector, embracing the asset side of the American balance sheet, rebalancing global trade, realigning the world to democratic values, and promoting American AI leadership.

It’s all a formula for a much faster growing, fiscally sound, and more prosperous economy.  Very good for markets.

All of that said, if Trump 2.0 did nothing more than stabilize what has been a very unstable world (which, importantly, includes restoring American global leadership), it would clear the way for the new industrial revolution to deliver a much faster growing, fiscally sound, and more prosperous economy.