Trump Win Set Off $2 Trillion Shock Rotation to Stocks From Debt
- Median stock-market gain 2%, often overwhelmed by dollar rally
- Anticipation of Trump reflation faces 2017 reality check
Lane: Tremendous Injection of Optimism in Markets
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Donald Trump’s election win sent a $2 trillion shock wave through global markets over the past month.
That’s how much equities’ global market value has jumped. And that’s about the size of the loss in worth of the Bloomberg Barclays Global Aggregate Index of bonds, over the worst month for global bonds in dollar terms on record. Other assets were roiled, too: the yen plunged the most in 21 years against the dollar. It all amounted to a complete reversal of the playbooks mapped out by a bevy of analysts and investors who had anticipated a Brexit-style rush for havens in the event of a surprise Republican presidential victory.