“We’re transitioning from this phase of hope into one where people are waiting for real action,” Jimmy Chang, chief investment strategist at Rockefeller & Co., told the WSJ.
Financial traders are looking for Trump to cut down on regulation, reduce taxes and increase fiscal spending. Banks in particular would strengthen if Trump rolled back some of the harsher rules set under Dodd-Frank and other post financial downturn regulations. Additionally, Trumps expansionary policies would further solidify the Fed’s tightening monetary policy, which would further help lenders.
“We may give Trump the benefit of doubt in the first hundred days but unless we see some legislation being passed through Congress, this hype might turn into gripe and that ends up being a trigger for the digestion of gains,” Sam Stovall, chief investment strategist at CFRA Research, told Reuters.
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