Making Sense of the Post-Election Financials Rally

The video discusses the current state of the financial market, focusing on shifting exposures rather than expanding them. It highlights positive dynamics like a steepening yield curve and potential regulatory changes under President-elect Trump. The discussion also covers the impact of interest rate increases and the challenges faced by global banks like Citi due to geopolitical events like Brexit. The video concludes with an analysis of JP Morgan's valuation and its position in the market.

What is the current strategy in the financial market according to the transcript?

• Shifting around exposures

• Growing exposures significantly

• Reducing all exposures

• Maintaining the same level of exposures

What is one of the expected positive changes for banks mentioned in the transcript?

• Reduction in dividend payouts

• Steepening yield curve

• Increase in new regulations

• Decrease in interest rates

What is a potential concern for banks regarding the new administration's policies?

• Increased global trade agreements

• Uncertainty in policy implementation

• Decrease in economic activity

• Higher corporate taxes

Why was Goldman Sachs upgraded according to the transcript?

• Due to decreased economic activity

• Because of better capital markets and raises

• Due to increased regulations

• Because of lower net interest margins

What is a challenge for Citi in the current macro environment?

• Increased profitability from cards

• High exposure to the US market

• Positive impact of global trade agreements

• Negative impact of corporate tax cuts