Regime Change (you are here): How to take advantage of emerging trends?
Reflation confirmed...
Most of the trades in the AAO portfolios surged and the market is clearly “risk-on” and reflationary.
On election day, financials led with a 5.9% jump, while energy and industrials were up 4%.
That’s a solid reflationary move.
The one I have been waiting for and it was brought on by the election.
As I thought it would be.
Questions have been pouring in from both political sides about how I could stay bullish no matter who won. My answer? Data, data, and more data. It’s what keeps a trader objective and calm, ready to act on opportunities.
November is historically the best month for stocks…
even more so post-election as the dollar peaks and drops, fueling the reflation trade.
So, what’s next?
Let’s stick with the trends. If you’re a short-term trader, taking profits may make sense, but if you’re holding for a few months, consider staying in.
Look at the laggards too: China, steel, and copper miners fell behind, but China’s momentum remains strong, and even with recent dips, we’re up 32% on FXI this year.
