As of early December, financials had accounted for more than half of the S&P 500 gains since Election Day. In addition to predictions of deregulation, the sector is also benefiting from rising interest rates, which is increasing margins and profits. This comes in spite of decreasing public trust in the financial sector, with a poll released before the election showing that 75 percent of the American public wants tighter restrictions on Wall Street financial companies to prevent a repeat of the 2008 financial crisis.
Biotech
It’s been difficult to avoid the biotech sector in the news, with Democrat candidate Hillary Clinton having recently accused the industry of “price-gouging.” Many companies (and investors) feared price regulations should Clinton take the White House, but now things have eased up a bit, with the majority not expecting any severe repercussions under Trump, despite vague comments in early December that he is “going to bring down drug prices.”
While Clinton promised to monitor pricing, limit consumer spending on drugs, and shorten patent protection, Trump has expressed a desire to reform the Food and Drug Administration, which would potentially reduce the time it takes to get new drugs to market.
