Trump Trades: How The Market Reacted to the Election Results
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I'm to call lap in the only financial expert. You don't need a dictionary to understand. It's time for some money. We have.

We are three days out from the election how we hold them up. This stock markets certainly had feelings about the day when he comes to elections. There are winners and losers.

Candidates, yes, but also winners and losers in the stock market. First, the stock market itself was a big winner. Stocks in the dollar both jumped following the election. Here's a clip from another podcast on our network trade like einstein were stockbroker repeat tech man reports from the floor of the york stock exchange Better tape this episode wednesday morning.

Here he is, everyone on the floor of the new york style to change is absolutely the in this world. And crazy. I have to admit that there is an electricity, irrespective of who you voted for, there is an amazing electricity around the floor about the fact that the election is over, that the market love IT.

It's going to be good. So far, we are seeing IT good for crypto. We're seeing IT good for tech.

We're seeing IT great for tesla. We're seeing good for the overall markets. Everywhere you go, there's plenty of Green on the screen. That's a good thing.

He also tape to follow up episode wednesday night. Here he is.

Good market closed up sixteen hundred points on the door. IT closed up a hundred, and change on the S. N.

P. Hype under the rusal up significantly. A lot of stocks trading easily at fifty two week eyes. It's amazing, right at the end of the day, we're in this together.

We need to stay strong and solid and look towards the future, right in order for us to be the greatest that we are, in order to this market to force higher in so many ways for everybody to participate in this rally. Look, at the end of the day, that's what we want. We want everybody to be participating in this, right, getting their feedback at getting involved in the market.

IT is somewhere you can go, somewhere you can access, somewhere you can make money, somewhere you can create financial income for you and your family, change the narrative, whatever is this market is there for you. All the barriers to ensure down is just a matter of educating yourselves, motivating, inspire yourselves. Bing bang shots.

You have a great night. There's the bell baby ring. That bell and IT was an .

electric day for the market for sure. Stock futures sold the S B, five hundred had its best day in nearly two years and climbed two and half percent. The dough jumped three and a half percent.

The national x surge, three percent. So how much of this surge is this election versus just elections in general? Well, historically, election years have been good years for the market.

One study from vanity found that markets have had returns averaging nine percent in election years since the thousand nine and fifties. That success is by partisan, by the way, if history is any guide, the next few months should be good ones for the market. Also, regardless of whether it's an election year, the holiday season tends drive a strong stock market as well.

Services is actually called this the sand of class rally. There's also the fact that september is almost always loud in the market, leaving stocks with nowhere to go. But bonist are also up with treasury yids to hitting their peaks for the year across the board.

What all this means long term is A T, V D. But for now, the bulls are stoked. One of the biggest winners to come out of this election, though, wasn't even on the ballot.

IT was elon musk. He is months of hybrid ile. Support for trump has paid off. I don't know if IT was the millions of dollars his tweet, or if him jumping up and down on stage and in his magaha that went viral did IT. But whatever IT was, IT worked.

Not only did he get his guy elected, but musk has guaranteed himself a seat at the table. Jeff bazas has been trying to buy that kind of club four years with his purchase of the washington post and at twenty three million dollar D, C, area, mentioned to stay in while he's in town. But none of that ever translated into the kind of pull that musk has gotten as a result of this election.

Not only does this theoretically help secure mosques contracts, because, remember, companies owned by moscow promised three billion dollars in government contract last year. IT could also in the help smooth things over between musk and federal regulators. Trump has offered musk a new position as the head of the government efficiency commission, which means mask might soon wield power over the agencies that previously tried to regulate him.

The markets clearly love this for him. And tesla stock rose fourteen percent the day after the election. Remember, most of musk companies are private, so unless you have millions of dollars and special access, you can't necessarily invest in space acts or neural ink.

So as a result, some investors bought tesla stock as a proxy for investing in musk other companies, but he's not the only proxy investment. Writing on the selection, Donald trump is the majority owner of trump's dia and technology group with its ticker simple D J T. At the beginning of the week, the share Price of D J T was thirty dollars and forty four cents the day after the election.

Once he was declared the winner of the election, D J, T hit a record of forty four dollars and thirty two cents on election day. IT had a market cap, which is the value of all of its shares of seven point four billion dollars. IT also announced revenue that day, and the company had lost a nineteen point two million on one million dollars of revenue.

The seven point four billion dollar market cap cannot be explained by the company a fundamentals or any future earning potential. But as a way, do you make a proxy ban on the election, support trump or just play with mean stocks? I guess that makes sense.

Well, as much as mean stocks make sense, bitcoin was also a major winner here, reaching over seventy five thousand dollars in a new high post election. The crypto to community has very much gone all in on trump, hoping that his general dislike of regulation would work in their favor. The biden administration has not been friendly to crypto projects.

Trump himself has expressed some distrust of crypto and quote, it's not money and quote is based on thin air. But he also literally ran ic casino. So I think it's safe to say that he's fine with people gambling.

So who are the losers in the market in the days following the election? Well, renewable energy is a big one, which will come as no surprise. Trump is known for his drill baby drill outlook on oil.

So solar stocks are limited. First solar, one of the largest solar companies, and ten percent. Now in the days following the election, there's been this uneasy, uneven feeling.

Some people are crushed, other people are elated. IT can be hard to bed. Quiet, calm spot of common ground. But do you know what we have to? Because we still all live together. IT feels like for the last eight years, about one half of the population has been really unhappy about the direction the country is going in IT flip sides. And we've gone through a pandemic, which was one of the strangers times in human history.

I don't know exactly how we do this, but I scarey hope that in the next four years we can collectively come to a place of equal liberum, where most people feel okay about the overall direction of the country. I know there will be people who hate this and think it's naive, but that's okay. AmErica is a dream, an idea.

And at our best, we should be aspirational. No matter how you feel about the election results, I think we're all united in feeling like there's room for improvement. Everyone has been struggling in this economy, and no matter who the president is, we need to take care of our own little mro economies, which is what i'm here for.

For todays step, you can take straight to the bank for the so called trump trades, the companies that people expect to rally, like bitcoin and tesler and oil companies. We may see these stocks climbing around inauguration time, but these stocks also might under perform because the market is very reactive. So if traders don't see their stocks soaring as predicted, they could quickly exit the trades and the stock will slump.

Remember, if you're invested in S M P five hundred index funds, you benefit IT from the jump in oil and in tesla and all the major trump stocks that rallied. But if these trump t trades go down the other stocks in the S M P of five one hundred old buffer losses, then. Money we have is a production of money news network.

I'm your host nickle lap in money rehab executive producer is more than the void. Our researcher is Emily homes. Do you need some money rehab? And let's be honest, we all do.

So email is your money questions, money rehab at money news network to come to potentially have your questions answered on the show or even have a one on one intervention with me and follow us on instagram at money news and tiktok at money news network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and board investing in yourself, which is the most important investment you can make.