It is time for the "bill" after the US Midterm elections
The truth is that preliminary polls really predicted what the final election results would be and was not a big surprise - a divided Congress.
Global X U.S. Infrastructure Development Exchange - Trader Fund (ticker PAVE) increased by 4.6% in the first four sessions of the month, surpassing the S & P500, which is 1.6% growth. A basket of stocks selected by Morgan Stanley performed well in the script if Trump won the election. They rose 5.5% this month.
In spite of success, Wall Street is not too late to hide hopes. According to economist Alec Phillips of Goldman Sachs: "Separated Congress is unlikely to start new changes to infrastructure programs." He adds, "While Trump and Democrats support such programs, the details are different and, most importantly, Democrats may be motivated enough to reach an agreement with the White House before the presidential elections in 2020.
Is Trump possible to build cooperation on a global level? Companies with too much exposure to China have also helped rebuild US stocks. However, this may pose risks. While Trump is limited to "maneuvering" with his domestic politics, he can force Trump to strengthen his foreign policy and, rather, to intensify the Commerce War.
Source: Bloomberg Finance L.P.
Chart: Used with permission of Bloomberg Finance L.P.
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