FINANCIAL LEGISLATION
BRIAN KANTOR: Trump’s victory may give US business a shot in the arm
While Clinton represented business as usual for the US and its allies, business as usual under Obama had become less friendly to business, writes Brian Kantor
The punditry not only greatly underestimated the presidential chances of Donald Trump, they also misread the implications for financial markets. Far from the predicted rush for safety in the US dollar, US Treasuries and defensive stocks, the market, when given the opportunity, pushed US bond yields higher, indicating that faster growth and more inflation is expected (the 10-year Treasury yield initially increased from 1.85% to 2.08%, though it closed at 2%). Further evidence of this came with the outperformance of resource companies, including those listed on the JSE. Of the 12 sectors that make up the S&P 500 financials and healthcare (expected to benefit from less obtrusive regulation and executive action) as well as materials (to benefit from growth and investment in infrastructure) were outperformers, while sectors that offered protection against a weaker economy, including consumer discretionary and staples, underperformed as did interest rate-sensitive sectors of the New York ...
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