November 2016 Market Insight
November markets have simply been captivated by the US Presidential election.
Early in the month all indicators strongly favored a Clinton victory. As election night results came in, futures on the Dow Jones Industrial Index dropped nearly 5% in overnight trading. In the morning following the confirmation that Trump had won, markets opened the day higher and finished the day up over 1%. US markets haven’t looked back since.
As investors try to understand what Trump’s policies will be and how they will be lived out, the trading trend certainly indicates expectation for strong growth in the US economy. While there are some good indicators of this, the future remains uncertain and we cannot throw caution to the wind.
In any event, November was a strong month for large US stocks as the S&P 500 was up 3.70% and very strong for smaller US stocks as the Russell 2000 index was up 11.15% for the month. For other areas of the market it was different.