Quote:
Originally Posted by Senator Clay Davis
Look at the stock sectors that are up right now. Defense, pharma, private prisons. Look at what's down: Gun manufacturers, clean energy companies, tech stocks. Market knows best, and market has inside connections to both the Dems and GOP. I think the GOP has soothed their worries that this will be anything but a standard GOP President.
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I think the "Trump Rally" has more to do with interest rates than anything. There's a much less chance of a rate hike in December now than when Clinton was polling ahead. And that has to do with the general thought that Trump is going to be problematic for the economy. Bad news is and has been for the last five years good news for the stock market via interest rates.
As well I think it was the uncertainty of everything that caused the pre election drop, like eight down days in a row. Just getting the uncertainty out of the equation is cause for much of the two day upside. We would have seen a bounce no matter who was elected. Markets hate uncertainty and if there had been a Bush/Gore'esque kerfuffel we may have seen a pretty good slide.
But I do love the vision of happy Trump voters scratching their heads while watching their Smith and Wesson stocks tank.