Goldman Sachs The Markets Is the Trump trade just getting started?
Nov 8, 2024
Shawn Tuteja, who oversees ETF and custom baskets volatility trading at Goldman Sachs, joins Chris Hussey to discuss the impact of the recent U.S. election on market dynamics. Tuteja delves into how election outcomes have historically influenced the S&P 500 and explores emerging opportunities in regional banks and deregulated industries. He also highlights the surprising strength of U.S. tech stocks and the potential for small businesses to thrive under a favorable government approach. Is the Trump trade just starting? Tune in for insights!
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Fed Put Confidence
- The market believes the Fed will support equity markets.
- This confidence stems from the Fed's recent rate cuts and commitment to further action.
Post-Election Rally Justification
- The S&P 500's post-election rally is reasonable given pre-election dips and market conditions.
- Factors like reduced volatility, strong seasonality, and corporate buybacks contribute to the positive trend.
Post-Election Sector Performance
- Deregulation-linked sectors like regional banks and energy outperformed after the election, similar to 2016.
- U.S. tech showed resilience, contrary to 2016, possibly due to expected stimulus in China.