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How to Play the Trump Stock Market Rally
Fundamentally
By PAUL J. LIM DEC. 9, 2016

In the four weeks since Donald J. Trump was elected president, many stocks have soared and the market’s winners have been clustered around a specific theme: an inflating economy.

Investors have concluded that at least in the short run, many of Mr. Trump’s policies, including increased spending on infrastructure projects, could lead to faster economic growth than was expected.

“If you have big tax cuts and more infrastructure and defense spending, that adds to demand, which is likely to spell inflation,” said David Kelly, chief global strategist for J.P. Morgan Funds.

That is partly why shares of big banks like Goldman Sachs, Bank of America and J.P. Morgan Chase and blue-chip industrial companies like Caterpillar and General Dynamics have surged since election night.

But after more than a month of this rally, value-minded investors think it may be time to start looking for bargains in areas of the market that have been left behind.

“The biggest opportunity is in the international markets,” said James Paulsen, chief investment strategist at Wells Capital Management. “Those stocks are getting pounded by one big factor — the dollar.”


http://www.nytimes.com/2016/12/09/your-money/how-to-play-the-trump-stock-market-rally.html?ref=dealbook