Post-Election Outlook

Stocks had one of their best performances in years, with increases of 5.4% for the Dow, and 3.8% for both the Nasdaq and S&P 500, following the election of Donald Trump as U.S. President. Widespread pre-election forecasts from investment banks were nearly universal for sizeable losses following a Trump victory; built on the premise that tariffs and scrapped trade deals would hurt the U.S. economy. While futures sold off hard during the election and into the early hours of the following day, losses were quickly erased. Pundits from everywhere were puzzled by the outcome and the so-called “Trump Trade”. Nevertheless, the surprise Republican sweep as well as toned-down rhetoric on the part of both candidates, appeared to be behind the market’s bullish tone. Perhaps the largest disappointment among investors is the unevenness of sector participation.

Click here to read more