Dow Jones Rally: 13% 2025 Gain Faces High CAPE Ratio and Fed Split

DIADIA

The Dow Jones Industrial Average rose 13% in 2025 under President Trump’s second term, on top of a cumulative 57% gain during his first term. However, market‐wide valuations at a Shiller P/E of 40.83—the second‐highest in 155 years—and an unusually divided Fed raise risks for sustaining DIA’s rally.

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