President Trump...

Trump won, the market expected Hillary, and at one point last night as the Electoral College votes were coming in market futures were down over 5%. These nerves have calmed and this morning won’t be a tragic market open. Futures are down a bit, not unlike a regular day, and the USD has rallied, which is a surprise. Bond yields are skyrocketing, which is a huge surprise, I think based of the relief of the election being behind us. 

The futures are only down 250, this puts us basically at Friday’s close. Nothing crazy.

Source: Bloomberg

Here is my shocking find – global yields are way up. I have not seen a day like this in years. This means bond prices dropped, bond prices should not drop in a panic and fear driven market. This is positive and it could potentially be an incredible tailwind for our financials stocks, obviously after the dust settles from the initial shock.

Source: Bloomberg

As far as our exposure, our technology stocks look a little weaker. Alibaba, a Chinese company is weaker, but only by about 2%, and I don’t think it will stick. We do not really have Mexican exposure so we will not be hurt by the fall in Pesos. 

At the end of the day, Trump kept saying he wanted to bring back jobs and stimulate the economy. The unemployment rate below speaks for itself – it hasn’t been this good in years, we just hope he doesn’t screw it up, which is a pretty hard task.

Source: Bloomberg

Our eyes are open, but good buying opportunities may be difficult to identify at this point.

We will keep you updated, but this seems like a non-event, and markets should rally all day as capital on the sidelines dashes in with the certainty of an election behind us.

This just proves that anyone can be president. 

Chris, Rick, Steve


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