The Trump Rally May Be Over Come Inauguration Day
Morgan Stanley warns of a “more uncertain and volatile outlook” after Jan. 20.
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Investors have greeted Donald Trump’s surprise win with the biggest stock market rally for any new U.S. president. Morgan Stanley is cautioning, however, that his coming inauguration may mark an end to these post-election good times.
The S&P 500 Index jumped 1 percent on Tuesday, pushing its gain since Nov. 8 toward 6 percent, on speculation Trump and policies pushed by the Republican-controlled Congress will boost growth. That’s all well and good, but near-record levels for U.S. stocks already reflect that sentiment, and the start of the Trump administration on Jan. 20 presents as good a time as any to scale back on equity holdings, the bank said.