Investors Try to Predict Trump

For months before Election Day, Wall Street analysts suggested a Trump victory would send stocks into a swoon. Some even predicted a global recession. Instead, in the wake of the President-elect’s unexpected victory, investment in certain sectors has soared. Here’s why:

INDUSTRIALS

Trump campaigned on massive new infrastructure investments and increased defense spending. The values of aerospace companies, defense contractors and construction firms all rose on his victory.

[The following text appears within a chart. Please see a hardcopy for actual chart.]

12%

8

4

0

11/8

11/15

+6%

PHARMACEUTICALS

With a Republican House and Senate, investors are betting that President Trump won’t try to impose new rules to lower drug prices and that global drug firms will be able to bring home foreign profits at a reduced tax rate.

[The following text appears within a chart. Please see hardcopy or PDF for actual chart.]

12%

8

4

0

11/8

11/15

+10%

FINANCIALS

With interest rates rising, big bank investors cheered Trump’s promises to soften financial regulations, undo taxes on investment income and dismantle Dodd-Frank, the Obama Administration’s financial-reform law.

[The following text appears within a chart. Please see hardcopy or PDF for actual chart.]

12%

8

4

0

11/8

11/15

+11%

INCREASE REFLECTS THE CHANGE FROM THE CLOSE PRICE ON NOV. 8 TO THE CLOSE PRICE ON NOV. 15. SOURCES: S&P DOW JONES INDICES