THE STRONG DOLLAR FAVORS SOME INDUSTRIES

The benchmark 10-year treasury has increased from the yield of 1.8 to 2.3% following the election of Trump. Concurrently, the dollar has moved to its higher level in years, recently closing at $1.05 to the Euro. This is caused the rally in the US equities market, but, is expected to have a positive effect on the financial sector. The S&P financial sector was up 2% as a result of the increase in interest rates. World interest rates are following this trend.

For 2017, most pundits expect there to be some confusion and uncertainty as the market tries to predict Trump’s moves. Most believe that Yellen’s promised increase in the discount rate will finally come to happen, and inflation may perk up a little bit historically, inflation does tend a purse investors for the equity market, rather than the bond market, where they face more of a downside.

Although REITs another interest rate sensitive stocks could be adversely affected, generally the Trump Administration is expected to be beneficial for the market. Going public in 2017 and beyond is something that could be a once in a generation opportunity.