Donald Trump was generally favored to win the election, but the scale of the Republican victory was not widely anticipated. Markets are now in flux as investors scramble to come to terms with what it all means for the economy and the future prospects of individual businesses.
The MAGA sweep is a true game changer.
The Trump team will have a free hand for at least two years to implement what could be very significant structural changes within the economy. There will be no gridlock.
Not only will the MAGA crowd control the federal government, the overwhelming victory (which shockingly includes a more than 4 million vote advantage in the popular vote) translates into psychological momentum behind the agenda.
The investment implications of the MAGA takeover, which could extend well beyond Trump’s term, are substantial. Trump’s impressive victory is broadly beneficial for stocks and will be particularly impactful in certain areas of the market that align with his policy goals.
While the news may only be a few days old, it is still important to take a long-term perspective on the opportunities ahead. If Trump and team succeed in bringing about the “greatest economic comeback in American history,” as JD Vance phrased it on election night, they will likely remain in power for some time.
Ronald Reagan and his successor George H.W. Bush occupied the White House for 12 years. While they were in office, the S&P 500 Index delivered a 15% annualized rate of return.
In our latest 76report, we explain why markets have quite rationally responded very positively to Trump’s victory. We detail which sectors and stocks we think are best positioned to take advantage of anticipated shifts in the political landscape, including 6 stock picks from our Model Portfolios.
