Weekly Market Commentary 11/11/2016

The aftershocks of Donald Trump’s upset victory continue to reverberate through the financial markets, sending stock prices into record-high territory and bond yields to their loftiest levels in nearly a year. This initial market response has been as unexpected as the election outcome itself. Most pundits thought that the reality of a Trump presidency would create so much anxiety and uncertainty regarding trade and economic policies that investors would dump risky assets, including stocks, and flee to safe havens, particularly Treasury securities. Such behavior, of course, would result in lower stock prices and plunging bond yields, just the opposite of what happened during the first three days after the election.