Market Musings 11/6/2024
Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store!
Trump won－so what does this mean for stocks?
Last night, Donald Trump defeated Kamala Harris. Markets are broadly rallying on potential tax cuts, but which stocks are the winners and losers of the #TrumpTrade?
The big winner is banks – potential deregulation can both bolster M&A and lighten capital requirements.
Similarly, we see large caps like #BigTech benefiting from likely less FTC oversight.
We also see #MadeInTheUSA manufacturing like auto benefiting from potential tariffs.
On the other side, we see China-exposed companies as losers as we expect the #ChinaTension to increase.
We also see clean energy as losers from #ElectricVehicles to solar to #GoingGreen power grid improvements.
Meanwhile, we see tech’s future a little more uncertain as well.
Semi reliance on Taiwan (particularly for high-end #AI chips) is top of mind for us.
Republicans will control the Senate and presidency, but House control is still up for grabs.
We’ll see how markets react as more elections are called. Typically, markets prefer a split government to reduce significant changes to the business environment.
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The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.
Original Photo by Pixabay.