Analysts: We're bullish on this Trump market 'melt up'
The coming Donald Trump revolution has given markets a "shot of adrenaline" on expectations of a more pro-growth presidency, Fidelity Investments' Jurrien Timmer told CNBC on Thursday.
"The markets had gotten completely used to secular stagnation as the regime forever, ... and now we have something much growthier and more inflationary, and that changes the leadership," Timmer told " Squawk Box ."
"You go from global to domestic, from large to small, from utilities to financials and industrials, so it's a big shift," he said.
Factor in the fact that money once flowing from equities into bonds has now reversed course, and also consider the time of year, which is typically the strongest for the market. "Combine all that and you get a 'melt up,' which is what we're seeing right now," Timmer said.
And in a market melting up so rapidly, where earnings forecasts for 2017 are looking up and the dollar, commodities, yields and stocks are all rising, it's a total buyer's market, strategists Doug Cote and Steven Rees said in separate "Squawk Box" interviews.
"You do want to buy today," said Rees, who added he's been bullish on U.S. markets all year. The JPMorgan Private Bank strategist said the economic recovery will likely go on for much longer and his focus on 2017 and even 2018 remains positive — with a caveat.
"Buy, yes, but optimize," Rees said, citing investors who have gotten too comfortable with largely defensive portfolios.
"You need to think about adding cyclical exposure to that, you need to think about adding small cap to that, and I think you need to think about adding international, because everyone's talking about the U.S.," he said. "But there are some good opportunities outside of the U.S."
Cote called this shift to growth and reflation as economic drivers the "new world order," citing the long term, stimulating effects of President-elect Trump's proposed tax cuts.
"You actually get a dual benefit. You get the supply-side tax cut for businesses, which is good for corporate earnings and decreased regulation, but you also get a demand-side [benefit] from lower income taxes for consumers, so ... it's a double whammy," the Voya Investment Management strategist said.
Still, there's no harm in playing it safe, Cote contended, citing the risk of investing in results yet to come.
"There are tail risks: execution risk of Trumponomics, what if it doesn't happen?" the strategist said. "I still want some bonds in there just in case. Global trade, what if we get a trade war? What's going on with the European Union and Italy? What if the European Union goes away?"
More From CNBC
Top News and Analysis
Latest News Video
Personal Finance
