Our Initial Election Thoughts

In a shocking come from behind victory, Donald Trump won the U.S. Presidential election last night.  It was shocking because, as we saw with the Brexit vote in June, most election polls failed to capture the degree of U.S. citizens’ unease and anti-establishment sentiment.  As the outcome became clearer money fled global equity markets–at one point the S&P 500 was down over 5%–and moved into safer assets–10 year Treasury bond yields declined a similar percentage.  As this is written mid-day Wednesday, the trade has reversed and the S&P 500 is up about 1% and 10 year Treasury yields are higher at almost 2% for the first time since early 2016.  So, will President-elect Trump be Good Trump or Bad Trump for markets?
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