Trump trades charge as Bitcoin hits $US80,000

Wall Street finished the week on a high as the so-called “Trump trades” charged. Equities are at the end of an almost unprecedented risk-laden three weeks, which included a deluge of data, a flood of mega-cap earnings, a Fed decision and a high stakes US election. At the end of it all, the markets mostly got what they wanted to see: signs of resilient economic activity, decent earnings growth, an interest rate cut, and a Trump victory that opens the door to tax cuts and massive amounts of fiscal stimulus. That’s driving US stocks to record highs, with small caps and cyclicals outperforming, with the US Dollar and yields lifting, too.

^{(Source: Trading View)}
(Past performance is not a reliable indicator of future results)

Bitcoin hits record highs on lower regulatory risk, prospect of deeper deficits

The Trump-trades were on full show, with US indices hitting record highs as cyclicals, especially small caps, outperformed. The US Dollar also rallied and yields edged higher. That wiped the shine off of gold, which has been a part of the “Trump-trade” basket but has been mechanically weighed down by the effects of a stronger Dollar. The biggest market endorsement of all comes from Bitcoin, however, with the crypto hitting $US80,000 for the first time as Trump heralds a period of much lower regulatory risk and a desire to find hedges and alternatives ahead of a very likely boom in US government spending.

_{(Source: Trading View)}
(Past performance is not a reliable indicator of future results)