Now that the election is over, there is a fair amount of uncertainty expected for the months ahead.
While the world watches President-elect Trump appoint his cabinet and staff, we at Ipreo are paying close attention to the financial markets as they react to a change in administration. The contest between Hillary Clinton and Donald Trump may be over, but the financial world is still waiting for things to settle as the markets come to terms with the new political landscape of the United States.
In our latest Special Report, we take a look at how the buy side and trading desks have adjusted in the days since the election.
Following the election, portfolio managers have adjusted their portfolios to capitalize where supposed Trump policies may benefit specific sectors. This trend was exacerbated as numerous funds were overweight high yield defensive sectors, and moved quickly to rotate capital into cyclical sectors that they perceived would benefit from Trump’s stated pro-growth policies. Specifically, this meant significant buying in the Financial, Healthcare, Industrial and Materials sectors, at the expense of the Utility, Consumer Staples, REIT and Technology sectors.
Read the full Ipreo Special Report: Post-Election Trading.