US Stocks Have Already Returned a Third of Post-election Gains
Decision analysis: Market enthusiasm is dwindling! China's rare bullish signals are hard to save the situation, and the dollar remains strong as Powell shows his hawkish stance.
On Friday (November 15), the asia stock market seems to be ending the week's dismal performance with a more stable trend. At the same time, the dollar is approaching a one-year high, likely to welcome a huge weekly gain. The Federal Reserve chairman's hawkish shift pushed up short-term usa treasury yields, causing wall street and europe stock market futures to decline.
The top institutions have disclosed their Q3 US stock hold positions! They are still heavily invested in technology stocks, but some signs are emerging.
Recently, the 13F reports of institutional investors in the US stock market have been released one after another, becoming an important channel for outsiders to understand the investment trends on Wall Street.
With the election risks dissipated, investors are frantically scooping up risk assets! Is there now no obstacle to the rise of the U.S. stock market?
Options investors are flocking into the US stock market to bet heavily on higher-risk stocks, which has supported the rising trend of US stocks against the backdrop of fading concerns over the election and the expectation that the Republicans will securely hold power in Congress next year.
The 'Trump trade' of the 2016 version completely reversed afterwards, what about this time?
After Trump's election victory, the US dollar, US stocks, and small cap stocks usually tend to strengthen. However, during Trump 1.0, from 2016 to 2020, the US dollar and small cap stocks performed poorly, failing to rise as expected, while the rise in US stocks was mostly attributable to the strength of technology stocks. Analysis suggests that the 'Trump trade' is not the same as 'Trump investment', it is more of a short-term market reaction rather than a long-term trend.
Be cautious! A new wave of inflation may be on the way.
Greenlight Capital's President David Einhorn expressed that the election results are good for avoiding the political stability issues he was worried about not long ago. However, in terms of the economy, he expects that Trump's second term policies will bring about higher inflation, thus leading to a bigger problem.