Trump Bump: Why Markets Are Rallying After the Election

The video discusses market reactions following Donald Trump's election, highlighting the unexpected rise in stocks and the sell-off in bonds. It examines sector performance, noting a shift from traditional bond proxies to sectors like financials and industrials. The Franklin Income Fund's strategy is explored, emphasizing sector diversification and yield opportunities. The video concludes with a discussion on investment dynamics, including cash flow shifts from bonds to equities and the potential impact of fiscal policies.

What was the initial market expectation following Trump's election?

• A market decline similar to post-Brexit

• A significant market rally

• Immediate market recovery

• Stable market conditions

Which sectors sold off due to the shift in market conditions?

• Financials and industrials

• Technology and healthcare

• Consumer staples and utilities

• Energy and materials

How did the Franklin Income Fund respond to the changing market dynamics?

• By reducing exposure to equities

• By investing heavily in real estate

• By increasing sector diversification

• By focusing solely on bond proxies

What was the impact of the Trump presidency on investor sentiment?

• Investors viewed it as a glass half full scenario

• Investors were indifferent

• Investors expected immediate economic decline

• Investors saw it as a negative scenario

What was one of the reasons for the shift from bonds to equities?

• Decline in long-term interest rates

• Increase in bond yields

• Stable interest rates

• Lack of investment opportunities in equities