A Quick & Dirty Look at 3 Markets Basking in Trump’s Glory
While many, myself included, expected Financial Armageddon, the end of days, and hell on earth etc. to ensue, following Donald Trump’s surprise election victory, the total opposite has occurred: Markets have hit new highs, companies continue to deliver impressive performance and unfortunately, Miley Cyrus still roams free.
As I slowly come to grips with the fact that America voted in ‘the Donald’ as commander-in-chief, there are three areas of the market that are set to receive an early Christmas present from ‘the Donald’. Let’s explore:
Healthcare: It appears to be a bit of an oxymoron to mention ‘Trump’ and ‘health’ in the same sentence, yet a Trump victory has been the stuff of dreams for CEOs of healthcare companies (think pfizer, Glaxosmithkline…), as it virtually ends the drug pricing reforms, proposed by Hillary Clinton, which would have lowered drug prices and reduced profits.
Financials: Yep, this is same sector, which is home to the morally bankrupt banksters (think bankers at Goldman Sachs, Barclays, JP Morgan etc.). The Trump magic at play in Financials, comes in the form of decreased regulation, favourable tax reform and increased spending, which should help perk up the cash vaults of US banks.
Apparently ‘regulation’ is a dirty word in banking parlance, so whenever ‘deregulation’ is heard it’s party time
Industrials: In order to ‘make American great again’ the Donald has singled out the need to spend loads of cash on infrastructure. Yep, its finally time to fix the many potholes plaguing America’s highways as well as rebuild schools, airports and hospitals. So, there’s a lot of good vibes surrounding the HQs of construction equipment manufacturers, Engineering and building material companies.
Ha… I envisage a ton of blokes wearing yellow construction helmets, grovelling at the feet of ‘the Donald’ in order to be first in line to build that stupid wall.
Love him or loathe him, you can deny that markets are fairly pleased with what’s on display, thus far, however, it is Donald Trump we are talking about and he has an uncanny ability to be consistently inconsistent, when it comes to elaborating on his policy plans, so best we all enjoy the rally while it lasts.