Below, the chart shows sector performance before Trump’s election compared with performance since the election. As you can see, financials jumped seven places to become the top-performing sector. What’s more, health care turned positive, suggesting investors are confident Trump and the Republican-controlled Congress can dismantle Obamacare.
Small-cap stocks, as measured by the Russell 2000 Index, are also way up on bets that Trump’s protectionist policies will benefit domestics with limited exposure to foreign markets, more so than multinational blue-chip stocks.
It might be too soon to tell, but I expect these trends to carry on into 2017.
The Financial Select Sector SPDR Fund (NYSE:XLF) fell $0.01 (-0.04%) in premarket trading Wednesday.
This article is brought to you courtesy of U.S. Global Investors.