Following the election of Donald Trump, domestic stock indexes rose to all-time highs. Industries expected to benefit from a Trump presidency include banking & financial services and energy. Meanwhile, the healthcare sector is expected to face increased challenges (and a contentious relationship with Trump supporter Robert F. Kennedy).
While stocks rose, treasury prices descended strongly (meaning interest rates rose sharply). Ever since the September Federal Reserve meeting when the Fed Funds rate was reduced, financial markets have reacted by sending interest rates sharply higher. The "why" here is a matter of speculation - it could mean an additional inflationary pulse is on the way or, perhaps, bond markets are pricing in tax cuts (and the need to offset them) from an incoming Trump administration. I'm not sure. Also interesting was the very weak October employment report. Typically, weak economic reports should lead to falling interest rates, not rising. As Ted, Theodore Logan, once said, "Strange things are afoot at the Circle K."
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