After the recent rally, some analysts and investors are questioning how much further the so-called Trump bump can provide as stocks are now hovering near record highs on economic policies that President-elect Donald Trump has promised. Markets have been largely trading on speculation of an economic bump from expansionary policies under a Trump administration, with little fundamentals to back it up.
Minutes from the Federal Reserve’s December meeting also revealed officials were unsure about the potential impact of Trump’s policies.
“Most people are trying to extend this positive sentiment from last year, but we do have some caution in the coming months something could turn,” Jeroen Blokland, a senior portfolio manager at Robeco, told the WSJ.
Meanwhile, safe-haven assets were picking up on Thursday, with yields on benchmark 10-year Treasury notes falling to 2.377% and gold futures gaining 1.3% to $1,183.6 per ounce.
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