Trump Trades

Wall Street is wearing its party hat.

The Dow Jones jumped over 1,500 points (3.5%) Wednesday––its biggest gain in two years–– on speculation that President-elect Trump’s promises of deregulation and tax cuts will add fuel to the economy.

Industries expected to benefit most from a Trump presidency––dubbed “Trump trades”––have soared. Big banks had a banner day on the prospect of lighter regulations (JP Morgan +12%), big tech rose on hopes of favorable policies and reduced antitrust scrutiny (Tesla +15%), and crypto surged on optimism the industry will be embraced (Bitcoin +8%). The big losers were tariff-exposed companies that manufacture goods overseas (Nike -3.5%) and real estate developers hit by rising bond prices. 

Yesterday, the Fed followed through on its widely anticipated 0.25-point interest rate cut, extending Wall Street’s festivities. 

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CHRISTIAN PERSPECTIVE
Too often, we let eternally insignificant things like the election or the ups and downs of the market control us. Seeking to steward money well is a good thing, but keep your focus on the Giver rather than the gifts. 

“For you know the grace of our Lord Jesus Christ: Though he was rich, for your sake he became poor, so that by his poverty you might become rich.”
2 Corinthians 8:9 (CSB) (read full passage)