{"id":17419,"date":"2016-12-17T06:37:25","date_gmt":"2016-12-17T06:37:25","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=17419"},"modified":"2016-12-17T06:37:25","modified_gmt":"2016-12-17T06:37:25","slug":"in-donald-trump-first-100-days-as-president-expect-old-economy-stocks-to-keep-winning","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/news\/in-donald-trump-first-100-days-as-president-expect-old-economy-stocks-to-keep-winning.html","title":{"rendered":"In Donald Trump First 100 Days As President Expect Old Economy Stocks To Keep Winning"},"content":{"rendered":"

In Donald Trump First 100 Days As President Expect Old Economy Stocks To Keep Winning<\/span><\/strong><\/span><\/h2>\n

In Donald Trump First 100 Days As President Expect Old Economy Stocks To Keep Winning:-<\/strong> Oil and gas drillers on the S&P 500 Index have surged 35% since Election Day, investment banks are up over 26% and construction firms have gained nearly 22%. Industrial and consumer discretionary stocks are joining in the Trump rally, but healthcare, consumer staples and technology stocks are selling off.<\/span><\/p>\n

If history is any guide, these market trends will continue in the first 100 days after President-elect Donald Trump enters office. Since 1993 it is old economy stocks like materials, financials, and energy drillers that outperform during the first 100 days of a presidency, according to an analysis prepared by Kensho for FORBES. New economy stocks like information technology, telecoms and healthcare normally sell-off, the data shows. Overall, the S&P 500 has gained 0.75% on average in the first 100 days of a presidency. (See chart)<\/span><\/p>\n

The Trump rally has brought bumper gains to the banking sector as investors position for a loosening of regulations. Goldman Sachs and JPMorgan Chase JPM are trading at new record highs, while Bank of America and Morgan Stanley continue to touch new post-crisis highs. Once-battered energy stocks have enjoyed a relief rally, supported by a surge in oil prices and confidence from Trump’s pro-drilling cabinet. Material and machinery firms like Martin Marietta and United Materials are among the best performing stocks on U.S. markets since Nov. 8 as Wall Street positions for increased public sector spending.<\/span><\/p>\n

Surprisingly, these gains could accelerate as Trump takes office. Kensho’s data shows materials stocks on the S&P 500 have rallied 12.2% on average during the first 100 days of a presidency, while financials gain 11.1% and energy stocks rise 9.8%. Rounding out sector gainers are consumer discretionary stocks, utilities and industrials, which all gain between 4% and 6%.<\/span><\/p>\n

Overall, the market normally gains, but there are losers. Healthcare sand consumer staple stocks have fallen on average over 4%, while IT and telecoms also trade off.<\/span><\/p>\n

With Trump in the White House and a Republican controlled House and Senate, a lot may get done at the outset of 2017. Trump has vowed broad based tax reform, a repeal of executive orders and a roll back of financial and healthcare regulations. It wouldn’t be surprising for the market to continue ripping in the first quarter.<\/span><\/p>\n

If the early days of Trump’s administration track with history, scouring the top performing sectors may turn up the stocks that will continue running hot in 2017. In a research report outlining the best ideas for next year, analysts at JPMorgan highlight the best options for investors with any strategy. Here’s what they had to say about the sectors that could enjoy a continued Trump bump.<\/span><\/p>\n

Materials: “We think money flows will be positive for the Chemical companies generally next year as managers weight their portfolios more toward diversified materials,” state a team of analysts led by Jeffrey Zekauskas.<\/span><\/p>\n

Growth \u2013 Scotts Miracle-Gro Co.<\/span><\/p>\n

Value \u2013 Monsanto<\/span><\/p>\n

Income Oriented \u2013 Dow Chemical<\/span><\/p>\n

Financials: “We expect the performance for large bank stocks in 2017 to be driven by the changes to be made by the incoming Republican Administration,” state a team of analysts led by Vivek Juneja.<\/span><\/p>\n

Growth \u2013 First Republic, SVB Financial<\/span><\/p>\n

Value \u2013 PNC Financial, Bank of America<\/span><\/p>\n

Energy: “We see a tale of two halves in 2017, with upside operating leverage in the first half supporting further gains in stocks giving way to a more challenging investing environment in the second half,” state a team of analysts led by Arun Jayaram<\/span><\/p>\n

Source:-\u00a0http:\/\/www.forbes.com\/sites\/antoinegara\/2016\/12\/16\/in-donald-trumps-first-100-days-expect-old-economy-stocks-to-keep-winning\/#5e190eec5391<\/span><\/p>\n

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