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Markets are rising because of Trump's transition agenda and “golden age.” And that's what the riff is about.

President Donald Trump became President-elect Donald Trump after his landslide victory on November 5. It's only been a month and one thing stands out: her transition has been extremely popular. Polls give him an approval rating above 50%.

But forward-looking financial markets, which are always a better indicator of the country's future health and wealth, have been cheering Mr. Trump for weeks. Some Wall Street jokers say stocks love Trump and bonds love Bessent.

Stocks rose nearly 3,000 points on the DOW and bond yields in the Treasury market fell nearly half a percentage point. The huge stock market rally signals endorsement of Mr. Trump's economic growth plan of cutting taxes, protecting America from unfair trade, and the DOGE brethren's desire to defeat the regulatory state and limit size and scope of government.

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Of note is the decline in bond yields, which belies the notion that investors view Trump's policies as inflationary. In fact, bond yields have fallen since Trump nominated Scott Bessent as Treasury Secretary and I think markets are very happy with Trump's economic team – the big three being Bessent at Treasury, Kevin Hassett at of director of the National Economic Council and Russ. Vought as budget director for the Office of Management. They are King Dollar advocates, market-savvy, supply-side, and pro-growth.

And speaking of appointments, Mr. Trump has so far nominated more than 70 major positions, in just a few weeks. The speed with which he makes his transition decisions is virtually unprecedented – peace comes through force on the national security side, and growth is favorable on the economic side.

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Promises made, promises kept – he told us in his victory speech on election night – we should take this seriously, bring the country together and end the divisions of the Biden era. Success is the best way to unify the country.

These are all Trumpian themes. These are all “America First” themes. These are all “gilded age” themes – exactly what the country needs.

This article is adapted from Larry Kudlow's opening commentary in the December 6, 2024 edition of “Kudlow.”