President Trump’s victory in November set off a monster rally in big stocks, small stocks, stocks with high tax rates, and infrastructure stocks among others. It also led to a sell-off in sectors that were perceived losers from a Trump victory. But as the WSJ explains in a power-packed chart (below), the Trump trade appears to be fading.
What’s the takeaway for you? Markets, and the investors who make up those markets, have a tendency of over- and under-reacting to news.
Jeremy Jones, CFA
Latest posts by Jeremy Jones, CFA (see all)
- IBM Plans to Make Great American Mainframes Again - April 22, 2019
- Is the Socialist Bent of the 2020 Presidential Race a Threat to Markets? - April 18, 2019
- Do You Want the Fed to Raise Prices? - April 17, 2019