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Investors would be crazy to ignore what the market is saying about a Trump economy

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I have been trained, over the course of my career, to listen to "the message of the markets." And some very important messages are being sent today to those who are willing to listen.

Since the initial surprise of Donald Trump's election has worn off, stocks, interest rates, the dollar and commodities, have all rallied in tandem, sending an important message about the future shape of economic growth here in the U.S.

While those rallies largely began before the election, they accelerated after November 8th and have also been reinforced by strong rebounds in developed markets around the world.

One may disagree with the President-elect's platform, as I have, but it would be foolish to ignore the unambiguous messages being sent by the markets over the last five weeks.

U.S. stocks are hitting record highs daily and are up 8.5 percent from the November lows. Interest rates have broken out to the highest levels of 2016, with the yield on the 10-year note reaching 2.5 percent, up a full percentage point from this year's lows.

Key industrial commodity prices are rising as well, from copper and steel prices to oil and natural gas. The U.S. dollar, meantime, has rallied to its highest level in years.

All of this suggests that Donald Trump's plans to slash individual and corporate taxes; deregulate vast segments of the economy; upgrade the U.S. military; and re-build critical infrastructure, will cause a pronounced acceleration in economic growth. In addition, it could drive inflation higher, possibly even above the Federal Reserve's stated target of 2 percent.

The prospect for greater fiscal stimulus, and faster growth, around the world, has been foreshadowed by rallies in equity markets from Japan to Germany and from Britain to Shanghai.

"While a Trump presidency also comes with some unusual quirks, daily tweets about countries and companies that can create unnecessary uncertainty, those may simply end up being background noise."

It is quite possible that we may see much stronger, much more synchronized, global growth in 2017 than we have seen at any time since 2003.

While a Trump presidency also comes with some unusual quirks, daily tweets about countries and companies that can create unnecessary uncertainty, those may simply end up being background noise.

The bigger and broader plans, backed by Congressional Republicans, could be enacted swiftly and with greater impact on the economy than the general public currently appreciates.

Congress can pass sweeping changes, which include comprehensive tax reform; the repeal of key elements (especially associated surtaxes), of the Affordable Care Act; and quickly de-fund elements of Dodd-Frank, with great speed and efficiency.

By using the budget reconciliation process which speeds bills through Congress without requiring a super majority of Senators to vote in favor of such changes, much of a Trump/Ryan agenda can be passed by a simple majority of the House and Senate, possibly without a single Democrat on board.

And since Congress did not use reconciliation last year, it can use that process twice this year, which means large parts of their plan could be enacted by September, at the latest.

The markets are clearly reflecting the depth and breadth of those changes, in my opinion.

If one assumes, as many market strategists do, that S&P earnings will grow 11-12 percent next year, albeit off a depressed base making for easy comparisons, the markets are also beginning to "price in" the additional profit enhancements that will come from lower taxes, a repatriation holiday and broad business deregulation.

Some experts say that could add an additional 10 percent to profits, leaving stocks undervalued, as opposed to overvalued, as some analysts currently suggest.

And, if all this is true, it also means that current interest rates are too low.

If growth and inflation accelerate, market interest rates will continue to rise, and the Federal Reserve could be "forced" to normalize policy at a faster-than-anticipated rate.

So too for other central banks. Global bond yields have been rising above negative territory as the so-called "bond vigilantes" are expecting fiscal policy to replace monetary policy as a growth driver around the world.

This is a "reflation trade" on steroids. And, this is a trade that could benefit stocks and hurt bonds for quite some time to come.

Individual investors should be quickly adjusting their portfolios to that end, if they haven't already.

The pros are doing it and so should they.

In this regard, one's personal politics don't matter. The markets are telling us what's coming and telling us what to do.

You may ignore Twitter at your own peril, but I would not suggest ignoring the message of the markets.


Commentary by Ron Insana, a CNBC and MSNBC contributor and the author of four books on Wall Street. Follow him on Twitter @rinsana.

For more insight from CNBC contributors, follow @CNBCopinion on Twitter.