Why Trump Could be Good for Markets

For many, if not most, the financial market reaction to President-elect Trump’s stunning victory would have been shocking. How on earth could US equities be up 1.1 per cent—an amazing 6 percentage points higher than the lows immediately after the result when the S&P500 smashed into its negative 5 per cent “circuit breaker”—and government bond yields be above their pre-election peaks after dropping like a stone? The answer resides in expectations of President Trump contrasted against “stump Trump”. Continue reading “Why Trump Could be Good for Markets”