The paradox of Dow 20,000

Greg Ip, one of the smartest thinkers in journalism, nails it in a Wall Street Journal front-pager:

"Britain is leaving the European Union, a protectionist is in the White House, the front-runner in France's presidential election wants out of the euro. Yet paradoxically, investors have concluded the world is getting less risky, not more … It is hard to explain this with economic fundamentals … What has changed is how investors assess the balance between upside and downside risks."

Quick take: Investors don't seem too spooled up about populist trends or rising threats to the euro and EU. Instead, they are jazzed about pro-business cabinet and president; promises of lower taxes, and more infrastructure spending and boost to banks, oil producers, and others.