Trump Effect Fuels Historic Rally in Risk Assets

DoTrading
11-12

Historic Records in Stock Indices

- $.SPX(.SPX)$ achieves landmark milestone surpassing 6,000 points (+0.1%), marking unprecedented territory in market history

- Dow Jones Industrial Average breaks through 44,000 points (+0.7%), demonstrating strong blue-chip performance

- $.IXIC(.IXIC)$ joins the record-breaking spree, reflecting continued tech sector strength

- Russell 2000's impressive 1.5% daily gain highlights growing investor confidence in smaller domestic companies

- Bond markets closed for Veterans Day, concentrating trading activity in equities

  • Major Winners of the "Trump Trade"

- $Tesla Motors(TSLA)$ emerges as a standout performer: 40% surge since election results, $300 billion increase in market capitalization

Small-cap stocks show remarkable strength: 8% rally in just four trading sessions, benefiting from domestic focus and potential protectionist policies and anticipated easier path for M&A activities under relaxed regulations. Russell 2000 outperformance reflects shifting market dynamics… $NVIDIA Corp(NVDA)$

  • Cryptocurrency markets surge:

Bitcoin approaches $90,000, gaining 25% post-election with a potential U.S. Strategic Bitcoin Reserve discussion, expected regulatory easing for crypto firms…

Risk Indicators to Watch

  • Market Sentiment Analysis

VIX currently at 15 points indicates healthy market conditions with historical comparison with 1998-2000 bubble period…

Current S&P 500 valuations at elevated levels and Investment grade corporate debt spreads notably tight

FactSet

Anticipated changes in federal oversight…

Conclusion

The post-election market environment has created significant opportunities across multiple asset classes, with particular strength in technology, small-caps, and cryptocurrencies. While current momentum remains strong, investors should maintain awareness of historical parallels and monitor risk indicators carefully. The combination of high valuations and low credit spreads suggests a need for balanced portfolio management despite the overall bullish sentiment.

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This analysis is based on observed market movements and analyst opinions. Market conditions can change rapidly, and past performance does not guarantee future results. Investors should conduct their own due diligence and consider their risk tolerance before making investment decisions. The information provided is for educational purposes only and should not be considered as financial advice.

@TigerStars @Tiger_SG @TigerPM @TigerCommunity @Tiger_comments @CaptainTiger

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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