The stock market's sentiment certainly changed following the U.S. presidential election on November 8th: After trading down for nine consecutive days followed by a sharp drop in the overnight futures market, the S&P 500 rebounded over 3% to record highs. Investors have new-found enthusiasm for domestic economic growth, as a Trump presidency could bring new infrastructure spending, lighter regulatory burdens and lower corporate taxes.
While the distance between campaign promises and corporate profits can be vast, we agree with the market's general assessment of how government policies might change. One industry that we might explore in light of the Trump presidency in the future is coal.
Some stocks (and entire industries) have moved so sharply that they already price in the potential positives from a Trump administration, while others still have considerably more upside potential. Investors can find these names by identifying stocks that may have underperformed their peers or… Read More …
