vrijdag 11 november 2016

How to trade the Trump Victory?

A lot of investors are in the dark about what a Trump victory actually means to the economy. In this article I will look at the most important event and try to give ideas on how to position yourself in that environment.

The most prominent action in the markets immediately after the Trump victory was a rise in 10 year U.S. bond yields (see chart below from Bloomberg).

You might think this is due to the market reacting to higher growth, but that is not true. It is the market's reaction to higher deficits.

You can read the analysis here.

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