Market Reactions to Presidential Election

The victory of Donald Trump in the U.S. presidential election has led to significant market movements, with U.S. stocks, bond yields, and the dollar experiencing sharp increases. Investors appear to be leaning into 'Trump trades' reminiscent of the 2016 election, favoring sectors like banks, technology, and energy. Historical data from 2016 indicated a strong market rally following the election, which is being revisited as investors reassess their risk positions. However, there are concerns about whether this time the market will respond similarly, given current differences in the economic environment and anticipated policy changes.