Trump Trades: How The Market Reacted to the Election Results
Money Rehab with Nicole Lapin
Deep Dive
Why did the stock market react positively to the election results?
The market reacted positively because the election outcome reduced uncertainty, historically leading to higher returns in election years. Additionally, the holiday season typically boosts the stock market.
How did Elon Musk benefit from the election results?
Elon Musk secured a significant influence in government, potentially smoothing relations with federal regulators and securing lucrative government contracts for his companies, leading to a 14% rise in Tesla stock.
Why did Bitcoin see a surge post-election?
Bitcoin surged due to expectations that a Trump presidency would be less regulatory, which is favorable for cryptocurrencies. The crypto community viewed this as an opportunity for less regulatory scrutiny.
Which sectors suffered after the election?
Renewable energy stocks, particularly solar companies, suffered as Trump's pro-oil stance was expected to hinder the growth of renewable energy initiatives, leading to a decline in solar stock prices.
What is the potential long-term impact of these election-driven market trends?
The long-term impact is uncertain as the market is highly reactive. While some stocks may continue to rise around inauguration time, they could also underperform if traders quickly exit trades that don't meet expectations.
- Stocks and the dollar both jumped following the election.
- The New York Stock Exchange was highly active and positive.
- Sectors like tech, crypto, and Tesla saw significant gains.
Shownotes Transcript