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International investment expert Doug Fabian shares with you what the international markets' reactions are to Trump's election.

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International Markets React to Trump’s Victory

International investment expert Doug Fabian shares with you what the international markets’ reactions are to Trump’s election.

If youâ??ve been paying even cursory attention to the markets since Election Day, you already know that stocks here in the United States have been on a tear. All three major indices — the Dow Industrials, S&P 500 and NASDAQ Composite — have made a series of new, all-time closing highs since the election of Donald J. Trump as the 45th president.

This move reflects the renewed optimism in markets that investors have about the Trump administration and its agenda of fiscal stimulus (infrastructure spending), tax cuts, regulation rollbacks and the repeal of Obamacare.

Whether all, some or none of these things come to pass next year isnâ??t the issue today. Rather, the issue now is that the market is pricing in a lot of growth expectations due to the expected Trump policies, and thatâ??s a very nice change in the orientation of markets from the state of the economy weâ??ve seen during the past eight years.

Now, within the domestic markets, there has been a pronounced rotation out of asset classes such as bonds and gold, and out of equity sectors like utilities, consumer staples, technology, real estate investment trusts (REITs), etc.

Where has all that money gone?

Well, it has migrated to industrials, defense, energy, basic materials and financials — all sectors that stand to benefit from the policy proposals expected by a President Trump.

Yet what about the rest of the global investing landscape? Has money been shunted out of certain global sectors and into others?

The answer is â??yes,â?ť somewhat. To see that rotation, all we need do is look at a few telling charts.

spy

Here we see the benchmark measure of the U.S. market, the SPDR S&P 500 ETF (SPY), surging since Election Day. During the past four weeks, SPY is up 4.4%.

To read the rest of this article, click here.

Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertâ??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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International Markets React to Trump’s Victory

If you’ve been paying even cursory attention to the markets since Election Day, you already know that stocks here in the United States have been on a tear. All three major indices — the Dow Industrials, S&P 500 and NASDAQ Composite — have made a series of new, all-time closing highs since the election of Donald J. Trump as the 45th president.

This move reflects the renewed optimism in markets that investors have about the Trump administration and its agenda of fiscal stimulus (infrastructure spending), tax cuts, regulation rollbacks and the repeal of Obamacare.

Whether all, some or none of these things come to pass next year isn’t the issue today. Rather, the issue now is that the market is pricing in a lot of growth expectations due to the expected Trump policies, and that’s a very nice change in the orientation of markets from the state of the economy we’ve seen during the past eight years.

Now, within the domestic markets, there has been a pronounced rotation out of asset classes such as bonds and gold, and out of equity sectors like utilities, consumer staples, technology, real estate investment trusts (REITs), etc.

Where has all that money gone?

Well, it has migrated to industrials, defense, energy, basic materials and financials — all sectors that stand to benefit from the policy proposals expected by a President Trump.

Yet what about the rest of the global investing landscape? Has money been shunted out of certain global sectors and into others?

The answer is “yes,” somewhat. To see that rotation, all we need do is look at a few telling charts.

Here we see the benchmark measure of the U.S. market, the SPDR S&P 500 ETF (SPY), surging since Election Day. During the past four weeks, SPY is up 4.4%.

To read the rest of this article, click here.

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