Ron Insana said while he doesn’t think the current bull stock market is ending, it is starting to look a little fatigued and may pause for a second wind.
“This market looks technically tired and it may be time for a bit of a break. You've seen money go into gold and U.S. Treasuries,” he recently told CNBC.
“You've seen European rates come down and places go more negative. There are concerns out there with respect to German elections, French elections, potentially political turmoil at home to a certain extent that might delay anything the market has been betting on," he said.
"It wouldn't surprise me if we took a pause here. I don't think the bull market is over yet,” Insana said.
“The Dow is up more than 18 percent since the November bottom and up over 7 percent year-to-date. If the current, torrid, pace of gains were to continue through August, the Dow would be up about 30 percent for the year,” Insana wrote in a separate blog for CNBC.com.
“It's quite possible that the stock market is wildly overbought in the short-run and due for a short and scary pullback. That's what bull market corrections are made of,” he said.
“The real risk to the market is the failure of Washington to deliver on the promises included in Tuesday's presidential address to Congress,” he said.
“If there is no tax reform, no massive de-regulation which the market is, quite literally, banking on; no immigration reform; no infrastructure spending and no ramp up in defense budgets, this market will be in trouble,” he said.
While his first few weeks have certainly been volatile and controversial, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz recently told TheStreet.com.
Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.
“If you just say, ‘well we're for free trade and we're not going to look at the deals that we make’ -- that's not a good idea,” he said. “We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”
Horowitz's new book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web. Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.
“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.