Market Musings 111124: Trump Mania sweeps US stocks
It's all about the US Election result
Given the likely Red sweep (Republicans winning the Presidency and both halves of Congress), US stocks have rallied hard post-election
on expectations of lower taxes and deregulation in 2025 (remember, the President is not inaugurated until January).
US S&P 500 (RSP etf equal-weight) breaks out to a new high
IJR US Small-caps also got a big lift
(as they should actually benefit more from any corporate tax cuts)
Key sectors to lead in this breakout: Financials, Technology, Biotech, Industrials (all equal-weight indices)
a) Financials (RSPF etf)
b) Technology (RSPT etf)
c) Biotech (XBI etf)
d) Industrials RSPN etf)
US dollar has strengthened against major pairs such as the Euro (EUR/USD)
Bitcoin has also broken out on views that Donald trump is pro-crypto
(boosted by strong inflows to bitcoin ETFs)
The PAVE US Infrastructure Development ETF remains a good way to play US investment trends:
In the UK, the IBT International Biotech Trust is following XBI in breaking to new highs
(and still trades at a near 14% discount to net assets, according to The AIC)
PCFT Polar Global Financials Trust is also following US financials higher
(trades at a 6% discount to net asset value)
Defence is also a theme that has benefited from a Trump victory
given his insistence that European NATO members fulfil their 2% defence spending of GDP pledges
See the NATO Future of Defence ETF
and the DFND iShares Global Aerospace & Defence ETF
(despite the problems of…
