Mark Hulbert: If you bought the Trump rumor, now it’s time to sell the news

CHAPEL HILL, N.C. (MarketWatch) — The next two months will show why we should “buy the rumor, sell the news.”

The “rumor” in this case was the speculation about what a Donald Trump presidency would mean for the economy. The “news” will kick in on Inauguration Day, Jan. 20.

Contrarian analysis provides the reason to sell that news: The widespread skepticism of early November has been replaced by pervasive optimism, if not exuberance.

Consider the average recommended equity exposure among a subset of short-term Nasdaq-oriented stock market timers who I monitor on a regular basis (as measured by the Hulbert Nasdaq Newsletter Sentiment Index, or HNNSI).

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