The Trump Rally Pauses for the Present
Stocks took a bit of a breather this week, with the first mellowing of the “Trump bump” that occurred after the Nov. 8 U.S. presidential election.
While the major averages were basically flat this week, there’s no doubt that money has been rotating out of sectors such as technology, biotech, utilities, bonds and gold, and into sectors such as financials, industrials, defense and basic materials that are poised to benefit from a Trump-related boost.
Now that we’re into the final month of the year, it will be interesting to see if the Trump rally — and the Trump rotation — will continue. That’s especially true in front of the potential headwinds on the horizon, the first of which is this Sunday’s Italian referendum vote.
If the Italians vote “No” to changes in their version of a constitution, then that could open the door for a Brexit-like move, or an “Ita-leave” as the term du jour goes (i.e. Italy could vote to leave the European Union the way Britain has).
If that happens, it will be very bad for international equity markets, including stocks here at home.
If you’d like to make sure you’re on top of the trends affecting your ETF (exchange traded fund) investments, then I invite you to check out my Successful ETF Investing advisory service, today!
Your Year-End Financial Checklist
The year is nearly over, and that means now is the time to think about what to do with your investments and your current financial disposition.
But the question is, where do you start?
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