Donald Trump's Win Positive For Financials, Energy Sector As 'Pro-Growth Effects Will Outweigh Inflationary Pressures,' Says Analyst

Donald Trump’s win is positive for the financial and energy sectors as the “pro-growth effects of fiscal stimulus currently outweigh the inflationary risks in the near term​​​” according to an analyst.

What Happened: Mario Georgiou, CFA and executive director, head of investments at InCred Global Wealth U.K., in an exclusive conversation with Benzinga, described tax cuts and deregulation as tailwinds to the markets. He considers inflationary policies such as tariffs and immigration impacts as headwinds, leading to a steepening yield curve, and higher term premiums.

“Financials offer an attractive risk-reward and that this recent post-election rally has room to run,” added Georgiou. According to him “financials are not only well positioned to capture the benefits of the above-mentioned Trump tailwinds, but are also less impacted / would even benefit from the Trump headwinds.”

Despite a few dips, the equity markets have been trading higher than the pre-election levels after President-elect Trump’s victory. The S&P 500 has increased ...

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