Price Headley to CNBC: "Stocks Are Climbing the Wall of Worry Trump's Plans Built"

On Thursday evening of this week, BigTrends' Price Headley appeared on CNBC World's Street Signs to discuss the impact President Donald Trump has already had on the market, and the impact he's likely to make in the foreseeable future. The assessment? The wall of worry built by, for, and around Trump is the very same wall the bulls are climbing, and will continue to climb.

Headley commented, "I contend that the wall that's being built is a wall of worry - a wall of skepticism about Trump - and that wall is only going to get 'taken down' by still-higher stock prices to come. I project the Dow Industrials gets to 21,000 fairly easily before the end of April this year."

It may seem like unachievable expectation, in light of the fact that the Dow Jones Industrial Average was already overbought and arguably overvalued when it cleared the 20,000 mark earlier this week. That's the new norm now, however. It only took the Dow 42 trading days to run from 19,000 to 20,000, which was the second-fastest 1000-point move ever for the blue-chip index.

Indeed, if Trump continues to move as quickly as he has been moving so far, investors may not even get a chance to stop and think about it long enough to question the rampant bullishness. "Look at what Trump's done just since he's been inaugurated. He's doing what he said he was going to do. He's actually living up to his promises to his base that voted him in," Headley added, "And so the bottom line is, I think that's a very positive thing. He's acting faster than we've seen any other new Presidents act when it comes to implementing what they said they were going to do."

Those pro-business actions include laying the plans to build the wall at the Mexico/U.S. border, a mandated review (for potentially revoking) manufacturing regulations, requiring U.S.-made steel to be used in U.S. interstate oil pipelines like the Dakota and Keystone pipelines, the cancellation of the country's participation in the disadvantageous Trans-Pacific Partnership, and establishing the plans for the repeal of the ACA and a replacement plan that works for insurers as well as consumers.

"A lot of people maybe didn't believe that he was going to build a wall, and the bottom line is, he says he's going to make it happen. As your prior guests had talked about, there are going to be some issues as it relates to impact on certain companies, but so far the stock market is saying 'all systems go,' " Headley said.

And he's right about investor optimism even though the political chatter has been pessimistic. The Dow Jones Industrial Average is up nearly 10% since Trump was elected in early November.

More of the same is apt to be in the cards too. Headley observed of investors treatment of recent earnings reports against the backdrop of Trump's Presidency, "Any time we've seen any kind of worry or negativity about Trump or his policy, those little dips get bought up, and that's what we're looking at. Just like we were talking about the reaction to earnings, it's not just that 70% of companies beating earnings. It's that those stocks are going up more than they're going down. That tells you money managers want to buy stocks. They want to be a part of this, and that we are likely to see more upside. I really do believe that despite the negativity on Trump, he continues to surprise. Basically, that's a fairly low bar to exceed because he keeps on getting positive reaction to the things he's doing."

To see the CNBC World clip, go here.