Surprise Election, Surprise Market
The voters have spoken.
What does it mean for investors?
First, the much-feared Trump Selloff didn’t last long. S&P 500 futures tanked as Trump’s victory unfolded – plunging as much as 5% in overnight trading — but then recouped the entire loss as bargain hunters swooped in – the largest 12-hour reversal since 2008.
By the time markets opened in the U.S., all was calm. Trump is one of the least predictable candidates elected president in generations, and markets hate uncertainty. But with the GOP in charge of Congress, investors figure that individual sectors and stocks might benefit from lower taxes and looser regulations.
For example, pharmaceutical stocks rallied on hopes that the Trump Administration, with Congressional cooperation, might loosen the reins on reimbursement prices.
Hospitals, on the other hand, were hurt by speculation that emboldened Republicans could renew attempts to repeal or revamp Obamacare, which could lower Medicaid reimbursements.
We’re watching these developments carefully, and we’ll issue trade alerts when we see opportunities to profit.
But overall, we advise taking it easy in the coming days and weeks. The transition of power from Obama to Trump will bring many changes – some obvious, some obscure. It’ll also bring a multitude of investment advice from every source imaginable. Most of those recommendations won’t pan out.
Our approach – in-depth analysis by seasoned experts with long track records of success – always beats jumping on a half-baked idea. Always.
Staying calm when others are losing their heads is essential.