By Pacific Funds via Iris.xyz
The post-U.S. presidential election environment has seen a sharp rally in risk assets and economic optimism. In this note, David Weismiller, portfolio manager for Pacific Asset Management’s investment-grade bond strategies, discusses the market environment and current investment positioning.
The market has changed; discuss the post-election environment.
Weismiller: Prior to the election, we felt the economy and corporate earnings were gaining momentum. Since the election, expectations of fiscal stimulus, tax reform, and regulatory rollbacks have improved sentiment. This optimism, along with improved economic and earnings outlooks, have been major catalysts driving risk assets higher (Table 1). With markets pricing in a lot of positive news, the short-term driver of market performance most likely will be whether sentiment is validated by policy action.
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