So the Wall Street now thinks that Trump rally is based on Fundamentals. And what are these fundamentals...that yields are too low to invest anywhere except equities.
I have been waiting for almost 4 years now in 'hope' that market crashes and becomes rational...And this idea of increase real growth by decreasing nominal rates is thrown in the dustbin forever.


https://www.nytimes.com/2017/08/02/business/economy/stock-market-trump-economy.html?_r=0

But a market surge based on political hopes has been replaced by one more firmly grounded in the financial realm.

Besides steady economic growth or less regulation, investors also have been encouraged by the loose reins of central banks like the Federal Reserve, which have helped keep interest rates not far above their historic lows. Inflation, too, remains tame, with price increases in recent months actually falling short of the Fed’s targets.

At the same time, with yields on safe assets like government bonds so minuscule, there are few appealing alternatives to stocks for investors, according to Torsten Slok, chief international economist at Deutsche Bank.

“No matter how you look at valuations, they are high,” he said. “But as money flows into pension funds every month and needs to be invested, why would I put it in bonds?