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.
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)