Donald Trump's shocking victory is defying all of the doomsday markets predictions that preceded it
- Markets now know who the president is. This may seem too simplistic, but markets really hate uncertainty. Not knowing who the next president would be made investors and businesses nervous, but now that the picture is clear, everyone can get on with their buying.
- Trump's fiscal stimulus package will lead to increased business activity. Trump's campaign proposed a $1 trillion package of public and private investment, which would be even larger than President Barack Obama's bailout package during the financial crisis. Ideally, this would lead to increased business investment and economic activity and growth.
- Trump will roll back regulation on banks and other businesses. Trump has said that he would do away with regulations on business, including the Dodd-Frank Act, which put controls on financial institutions. It's no surprise that the financial sector has been one of the best-performing sectors in the past few days.
- Investors really like tax reform. Trump wants to lower taxeson companies and investors, which has been a favorite proposal of Wall Street's for some time.
- Stocks usually go up. There wasn't a collapse of the democracy, or someone disputing the results, or a violent transfer of power. If markets can get through World War II, it's likely that they will continue their 100-plus-year trend of going up and to the right.
Published November 10, 2016
Join the discussion — please keep to our Community Guidelines.