Thus Far, the Trump Rally is Playing Out Exactly as Planned

What did he tell you during the campaign?

He said he’d ‘make America great again’ by focusing on infrastructure, reducing taxes, regulations and illegal immigration. He discussed whimsical projects, such as new airports and a southern border wall — to be paid for by Mexico. He promised lower drug prices and better healthcare insurance, a stronger military and making our educators accountable by permitting parents to use vouchers for private schools.

The results in the market have been exactly what one would expect.

Year to date, the top performing industries are aluminum (+35%), nuclear (+31%), gold (+27%) and copper (+18%). Clearly, the market is pricing in an infrastructure boom.

Over the past three months, the financials were one of the leading sectors, higher by 30%, accompanying oil and gas drillers, insurance and steel.

On the downside, department stores (-19%), home furnishing (-11%) and textiles (-10%) are key standouts — obviously hurt by the specter of a harsh border tax on goods entering the country.

All in all, I’d expect more of the same, with a possible respite in healthcare names — since they’ve already bee beaten to a pulp. As long as the Trump agenda continues, unabated, investors should anticipate highest returns in areas that encapsulate heavy construction, reduction of regulations, and purveyors of materials.