Updated: November 21, 2016
Forget the pundits—they totally blew the call on this election. And I sure hope you didn’t take their stock advice, either.
Ahead of the vote, one economics professor said the market would drop 7% if Trump won. Another analyst said you should go to cash “if you’re not already there.”
I could go on.
If you followed that advice, you’ve missed a 2.1% rise in the S&P 500 since Election Day. It’s worse if you were overweight financials, as the sector has been on an absolute tear, with the iShares US Financials ETF (IYF) surging 7.0%.
But not surprising, as banks will benefit most from higher interest rates—and a selloff in the bond market has pushed the yield on the 10-year Treasury to around 2.25% from 1.87% on November 8.… Read more