Trump doesn't kill the bull market. Here's why

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Trump meets with airline executives

Trump meets with airline executives

More and more Wall Street businessmen and strategists are expressing concern about what President Donald Trump's protectionist policies and unpredictable nature could mean for markets and the economy.

But we all know that actions speak louder than words. What investors actually do is in stark contrast to what people say. The Dow, S&P 500 and Nasdaq hit all-time highs again on Friday.

And the Russell 2000, an index of small companies that do most of their business in the United States, is only a few points away from the all-time high it hit in December after the Trump market's euphoria.

What's more that VIX (VIX), a measure of volatility known as the measure of fear on Wall Street, has also dropped nearly 25% this year. If investors were really scared of Trump, the VIX should be much higher.

CNNMoney's own Fear & Greed index, which looks at the VIX and six other investor sentiment indicators, shows signs of greed and is not far from the level of extreme greed.

Of course, Trump still can't put up with tweeting about things that, to be honest, are of no use to the economy – although Nordstrom investors are richer, even though Trump is attacking them for dumping his daughter Ivanka's brand.

But to give credit where it is due, it seems to be the main reason why stocks have started to take off recently, as Trump has promised to present a "phenomenal" tax plan soon.

Related: Rare series for US stocks: Long distance without 1% dive

Trump also promised to invest more in infrastructure again when he met with airline CEOs on Thursday.

The market wants to hear that.

"We still expect fiscal incentives, lower taxes and less regulation," said Matt Lockridge, manager of the Westwood Small Cap Value Fund. "Timing is the big question, but it is coming."

Lockridge believes that if Trump's stimulus gets the economy going, many companies that generate most of their revenue from America should benefit.

He likes stocks in a variety of industries, such as cinema owners Masco (MAS), Snack company J & J (JJSF) and Aerospace Equipment Company Arrived (KAMN),

Another money manager said he was also optimistic about small US stocks that could benefit from Trump's policies.

See also: Wall Street has a powerful seat with Trump

Barry James, president and CEO of James Investment Research, said he bought them iShares Russell 2000 ETF (IWM) the day after the election because he is confident that Trump's stimulus package will boost US small business growth.

"When Trump said America for the first time, I think that's what he means," said James, adding that he means internet phone service Vonage (VG), Retailers Aarons (AAN) and discount chain Big lots (LARGE) anything could thrive if Trump's suggestions go through.

But there is another reason why US markets are near all-time highs. Despite all the uncertainties in Washington, the United States is still the epitome of relative stability compared to other parts of the world.

The European economy is thanks to Brexit, the rise of populism in France, which is causing concerns about a so-called Frexit and more concerns about the problem that never seems to go away – Greece's debt problems.

The Japanese economy is also stagnating. We are now talking about more than just a lost decade. It is plural. China's economy is also slowing.

Pension Fund manager Bill Gross has often joked that America is what Johnny Cash and Kris Kristofferson sang about in "Sunday Morning Coming Down" – the "cleanest dirty shirt".

To this end, analysts of rating firm Fitch wrote in a report on Friday that "elements of President Trump's economic agenda are positive for growth," but added that "the current balance of risks indicates a less favorable global outcome" ,

Of course, this coin has two sides. Trump's bomb could come back to haunt him.

Related: Oreo Make is concerned about the rise of populism

His ongoing penchant for reprimanding companies he disagrees with on Twitter could affect investor confidence.

And while his proposed travel ban for immigrants from seven predominantly Muslim countries has been lifted by the U.S. judicial system, the president has vowed to fight for his reinstatement.

Even if he loses this fight, it is still clear that Trump is serious about turning more inward, with tariff and border tax plans that could trigger trade wars with Mexico, China, and Japan. This could harm large US multinational companies and lead to job cuts.

However, investors still seem to believe / hope that the benefits of Trump's growth plans and tax cuts will outweigh the effects of isolationism. Let’s hope they’re right.

Investors may be holding their noses, closing their eyes, and stuffing cotton in their ears to drown out the president. But they still buy stocks.

CNNMoney (New York) First published February 10, 2017: 11:55 ET