In our election preview story (see “Bizarro world election,” November 2016) analysts broke down the expectations of the markets and which markets would be winners or losers depending on the outcome.
Our analysts provided guidance regarding how different market sectors would respond to the election. Most of the analysis involved reaction to a Donald Trump win because there was an assumption that a Hillary Clinton victory was baked into the current price and would be a non-event market-wise.
Our analysts were spot-on regarding the reaction of Treasuries (negative) and specific sectors like big pharma. The Trump victory was expected to cause volatility in markets, which has been good so far for exchange stocks. What also has become apparent is the complete sweep (President and both House of Congress) portends the potential death of Dodd-Frank and a broad rollback of regulations that has spurred on banking stocks.
Here is how several relevant market sectors have reacted to the election.