May we live in interesting times! Speaking of which, market reaction to Trump’s victory was quite interesting indeed. Stock futures got really dicey when it first started looking like Trump might win:
Then in a span of a few hours the market somehow decided that it’s not so bad after all:
At the end of the day, the S&P 500 was up 1.1% (or 6%+ from overnight lows). Below is a quick analysis of the main beneficiaries – I took top 140 performers in the S&P 500, then I broke them up by sector / theme and provided my [cynical] guess on why they did so well. And most of them are doing quite well on Day 2 (Thursday, Nov 10) with the exception of Oil & Gas names.
On the flipside, biggest losers were a slew of utilities and REITs (rates are going up), as well as hospitals, medical equipment & services (fewer customers if Obamacare is repealed). Renewable energy and consumer product companies that do a lot of business in Mexico got shellacked too.
Nobody really knows where the market will settle down and who the long-term beneficiaries of Trump administration will be. But in the meantime all we can do is stick to our long-term plan and don’t react to market’s silly hissy fits!