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Markets soar on Trump win as big banks rocket higher
By BEN WHITE 11/10/16 01:52 PM EST
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NEW YORK — Markets continued to defy grim predictions of a Donald Trump-induced selloff on Thursday, with the Dow soaring to new highs. The biggest winners in the post-election advance: Wall Street’s largest banks.

Stocks in some of the biggest financial firms in the world, including Goldman Sachs, Morgan Stanley and JPMorgan Chase are rocketing higher after Trump’s shocking win on hopes for a lighter regulatory hand and the big role that experienced Wall Street veterans could play in the new administration.


“The pre-election narrative was wrong,” said Christopher Whalen, head of research at Kroll Bond Rating Agency. “We all assumed we were entering an era of left-wing democracy. But now we have a pro-growth GOP president and a pro-growth GOP Congress and we have to completely reset the narrative.”

Shares in Goldman were up about 9 percent as of midday Thursday following the election. Morgan Stanley was up 10 percent and JPMorgan Chase nearly 9 percent, helping drive the broader market higher.

“Banks are rising because of the likely relaxation of Dodd-Frank and other banking legislation which has been expensive and burdensome,” said Douglas Kass, founder of Seabreeze Partners, who has written a book on the sector and covered it for decades. “And bank stocks right now are cheap and undervalued.”

The gains came as markets rallied back from a huge overnight selloff as Trump’s victory appeared increasingly assured Tuesday night. The Dow is now up about 2 percent since Trump’s win, defying warnings from academics and traders that his victory over Hillary Clinton would spark a market meltdown.

Big banks are performing better than the broader market for several clear reasons, experts say. Investors are no longer worried that an ascendant liberal wing of the Democratic Party, led by Elizabeth Warren, will impose tough new regulations including higher capital standards.

And Trump’s inner-circle of advisers is peppered with Wall Street executives not likely to push for a big crackdown on the financial industry. They include investor Steve Mnuchin, a former Goldman executive rumored for Treasury Secretary under Trump as well as billionaire investor Wilbur Ross and economist David Malpass, who worked at Bear Stearns for 15 years.

Donald Trump's plane lands at Reagan Airport in Washington D.C. on November 10.
Trump: I can't get started soon enough
By NOLAN D. MCCASKILL
CNBC reported Thursday that some Trump advisers would like JPMorgan Chase CEO Jamie Dimon for Treasury secretary. Dimon has repeatedly said he does not want the job and nothing about that has changed, according to those who know him.

Still, the universe of names in play has investors in bank stocks giddy. And there remains some hope that direct appeals from Trump to serve the country could eventually sway those like Dimon who profess no interest in top jobs. During the George W. Bush administration, then-Goldman Sachs CEO Hank Paulson turned down the job of Treasury secretary. But when the financial crisis emerged he relented and agreed to serve.

But overall, the relief on Wall Street suggests many believe the era of bankers as national villains is coming to an end.

“It’s not just that there is now a Republican president, it’s that Republicans held the Senate and that’s quite important,” said Michael Mayo, a veteran banking industry analyst now at CLSA. “As of Nov. 8th, the financial crisis is over. As of that day we go from bashing banks to using banks to help facilitate economic growth.”

The gains on Wall Street are not limited to banks. The broader market is rallying on hopes that a Trump administration will push for big fiscal stimulus for the economy including large infrastructure spending.

9 of the nastiest things Obama said about Trump
9 of the nastiest things Obama said about Trump
By MADELINE CONWAY
The Dow was up more than 200 points in afternoon trading on Thursday, a second day of gains led by financial, pharmaceutical and defense companies all expected to fare well under Trump, who has proposed to shred thousands of existing regulations and cut taxes for businesses and individuals.

That’s caused an entire rethinking of the political paradigm on Wall Street. For now, fear over Trump’s erratic campaign persona has been eclipsed by hope for what he might achieve.

For bank lobbyists in Washington, the hope is less that Trump will immediately shred the 2010 Dodd-Frank financial reform law — though some hope he will — but that all of the new scrutiny and tougher regulations they feared from a Clinton presidency and a Democratic senate is now gone.

“People are realistic about getting rid of existing regulations,” one top bank lobbyist said on Thursday. “But at least the piling-on and fresh attacks seem like they will go away.”

The advance in bank stocks also reflects that the biggest firms built up heavy capital cushions and restructured their balance sheets following the crisis and are in much stronger shape than they were eight years ago.

“Banks have record capital and liquidity now and they can shift from being on defense to going on offense,” Mayo said. “For the last several years they played defense by adding capital and liquidity and dealing with regulators. Now they can move back to offense and deploy some of that extra capital.”

 

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Drugb posted:
yuji22 posted:

Long Live President Trump Ji !

Socialism has ended.

Are you Canadian? Why are you all up in our business like this? Go worry about Canada. 

Canada is probably boring. I see a lot of them all up in our business.    

FM

The market loves Obama. The DOW increased from 6000 to over 18000.

This means that Obama managed the economy well.

The reason why Wall Street is celebrating is that Trump wants to remove all the restraints that the majority of Americans wanted to ensure that they don't destroy the economy.

Expect another collapse of the financial sector, as they once again are allowed to engage in speculative antics, knowing that the government will bail them out if their assumptions turn out wrong.

FM
Drugb posted:
yuji22 posted:

Long Live President Trump Ji !

Socialism has ended.

Are you Canadian? Why are you all up in our business like this? Go worry about Canada. 

He is all up in our business because he think Trump is Indian and Hindu.

Chief

Let's face the fact that neither the republicans nor the democrats had a strong presidential candidate to deal with Trump.  Trump may have bullied and bullshitted his way to the top but who do you blame for it??  Hillary did not know how to bark back at Trump when he barked at her.  A Jean Kirk-Patrick would have snapped back so fast that he would have lost his balance mentally and think twice of coming again.  Look at how he demolished Ted Cruz and Rubio making them look like his subordinates who needs a paycheck from him.  This election was a joke.  A woman running against a tough New Yorker with a notorious reputation in business-dealings and no political experience.  

Trump played on the growing fear of White America that they are becoming marginalized by immigrants.  Whether this fear is real or imagined it did resonate well with the Trump campaign. Hillary countered that argument. It would have been prudent for her to either ignore it or place less emphasis on it. She could have stated how tough Obama has been on deporting illegals.  

 

Billy Ram Balgobin
Billy Ram Balgobin posted:

Let's face the fact that neither the republicans nor the democrats had a strong presidential candidate to deal with Trump.  Trump may have bullied and bullshitted his way to the top but who do you blame for it??  Hillary did not know how to bark back at Trump when he barked at her.  A Jean Kirk-Patrick would have snapped back so fast that he would have lost his balance mentally and think twice of coming again.  Look at how he demolished Ted Cruz and Rubio making them look like his subordinates who needs a paycheck from him.  This election was a joke.  A woman running against a tough New Yorker with a notorious reputation in business-dealings and no political experience.  

Trump played on the growing fear of White America that they are becoming marginalized by immigrants.  Whether this fear is real or imagined it did resonate well with the Trump campaign. Hillary countered that argument. It would have been prudent for her to either ignore it or place less emphasis on it. She could have stated how tough Obama has been on deporting illegals.  

 

Nonsense, Trump was, and is, a good option.  [Crooked] Hillary has always been a tainted politician involved in shady business and is opportunistic.  She was never well liked nor trusted.  Her behavior after losing reflects this personality flaw.  The more she talks, the better I feel that she lost!  She blames everyone but herself, ok she can blame the "basket of deplorables" rather than the FBI or Ras-Putin!! She can also blame being a woman.  Well, it seems women don't mind hanky-panky Donald!  The women is deeply flawed!

Trump beat every single opponent at their game, he proved himself a master at winning.  He threw hack whatever came and more.  His moderation in rhetoric since winning shows is flexibility and sensibility.  Trump will take this job seriously and is well aware of his promises and the people who voted for him,and why.  He will not let them down.  Trump will do for Blacks what Obama never did, never even tried!

HAIL TRUMP!!

FM
caribny posted:

The market loves Obama. The DOW increased from 6000 to over 18000.

This means that Obama managed the economy well.

The reason why Wall Street is celebrating is that Trump wants to remove all the restraints that the majority of Americans wanted to ensure that they don't destroy the economy.

Expect another collapse of the financial sector, as they once again are allowed to engage in speculative antics, knowing that the government will bail them out if their assumptions turn out wrong.

Listen, different parts of the markets like different presidents.  Pharma, Financials and some other sectors were flat line for years under Obama.

Obama's economy did ok, I would not deem it as well.  Many companies are highly leveraged and surviving on -0- interest rates.  We have a lack-luster housing market in spite of low rates.  The reason is job stability and income levels. Credit worthiness is still an issue. This is not signs of a strong economy.  I also told you, the equity markets are buoyed by a disproportionate allocation of funds into equities due to low rates.  This is not a good balance.

I don't think the financial sector will be allowed to engage in antics.  Trump wants deregulation of industries to boost investment in substance, not in financials to play games.  Trump is a hard-hat bricks and mortar guy, he is suspect of creating "spreadsheet" intrinsics!

He is neither a technocrat nor an elitist!

HAIL TRUMP!!

FM
Last edited by Former Member
Leonora posted:
yuji22 posted:

Kari's prediction of doom and gloom goes to the tank.

  

Alyuh leff Kari alone.  The banna man got enough depression that Trump thumped them all!  I saw Tola lurking around the board again.  I guess he sensed a pick up in the business of suicide.  For this reason, I have been easy on the banna!

FM
ba$eman posted:
Billy Ram Balgobin posted:

Let's face the fact that neither the republicans nor the democrats had a strong presidential candidate to deal with Trump.  Trump may have bullied and bullshitted his way to the top but who do you blame for it??  Hillary did not know how to bark back at Trump when he barked at her.  A Jean Kirk-Patrick would have snapped back so fast that he would have lost his balance mentally and think twice of coming again.  Look at how he demolished Ted Cruz and Rubio making them look like his subordinates who needs a paycheck from him.  This election was a joke.  A woman running against a tough New Yorker with a notorious reputation in business-dealings and no political experience.  

Trump played on the growing fear of White America that they are becoming marginalized by immigrants.  Whether this fear is real or imagined it did resonate well with the Trump campaign. Hillary countered that argument. It would have been prudent for her to either ignore it or place less emphasis on it. She could have stated how tough Obama has been on deporting illegals.  

 

Nonsense, Trump was, and is, a good option.  [Crooked] Hillary has always been a tainted politician involved in shady business and is opportunistic.  She was never well liked nor trusted.  Her behavior after losing reflects this personality flaw.  The more she talks, the better I feel that she lost!  She blames everyone but herself, ok she can blame the "basket of deplorables" rather than the FBI or Ras-Putin!! She can also blame being a woman.  Well, it seems women don't mind hanky-panky Donald!  The women is deeply flawed!

Trump beat every single opponent at their game, he proved himself a master at winning.  He threw hack whatever came and more.  His moderation in rhetoric since winning shows is flexibility and sensibility.  Trump will take this job seriously and is well aware of his promises and the people who voted for him,and why.  He will not let them down.  Trump will do for Blacks what Obama never did, never even tried!

HAIL TRUMP!!

Trump is an empty vessel who has warped his opinions to whatever served him for the moment. He lack a core of convictions based on normal ethical understanding of why things work best. To him it is to cut corners, lie, scam if he can and be as ruthlessly amoral on his path to his view of the ends and his ends are always ruthlessly his self interest. The american people will see this in action in short order since he cannot be otherwise. That requires thinking ethically.

FM
caribny posted:

The market loves Obama. The DOW increased from 6000 to over 18000.

This means that Obama managed the economy well.

The reason why Wall Street is celebrating is that Trump wants to remove all the restraints that the majority of Americans wanted to ensure that they don't destroy the economy.

Expect another collapse of the financial sector, as they once again are allowed to engage in speculative antics, knowing that the government will bail them out if their assumptions turn out wrong.

Props to Obama, however its a new day and we should hope for the best from Trump. Hopefully he will sucker us into wars. This is the biggest threat. 

FM
Drugb posted:
caribny posted:

The market loves Obama. The DOW increased from 6000 to over 18000.

This means that Obama managed the economy well.

The reason why Wall Street is celebrating is that Trump wants to remove all the restraints that the majority of Americans wanted to ensure that they don't destroy the economy.

Expect another collapse of the financial sector, as they once again are allowed to engage in speculative antics, knowing that the government will bail them out if their assumptions turn out wrong.

Props to Obama, however its a new day and we should hope for the best from Trump. Hopefully he will sucker us into wars. This is the biggest threat. 

The stock market will go up but a lot of people will suffer with the next crash.  People are putting their money heavily into stock markets because of the low interest rates for saving account.  Saving accounts should be a backbone for household but people are not going that route.

Of course he will fund the military industrial complex also.  Stock in military, coal, oil,  Pharmaceutical, banking etc. will go up while those in environmental issues will take a big hit.  You don't have to be a genius to know this.

The problem is that there will be less oversight and more reasons for a market crash under Trump.

FM
yuji22 posted:

Long Live President Trump Ji !

Socialism has ended.

Bai Jugi, you will be disappointed when it turns out that the Republicans will be the ones fighting Donal Trump's presidency and not the Democrats so much. The markets know and that's why they rallied. See how mesmerized he was by charismatic Obama and the realities the day after? Watch how his Manhattan socialites take control of this President who's already luxuriating in the same swamp he wants to drain in DC - the corporate lobbyists who have taken over his transition team.

Kari
Billy Ram Balgobin posted:

Let's face the fact that neither the republicans nor the democrats had a strong presidential candidate to deal with Trump.  Trump may have bullied and bullshitted his way to the top but who do you blame for it??  Hillary did not know how to bark back at Trump when he barked at her.  A Jean Kirk-Patrick would have snapped back so fast that he would have lost his balance mentally and think twice of coming again.  Look at how he demolished Ted Cruz and Rubio making them look like his subordinates who needs a paycheck from him.  This election was a joke.  A woman running against a tough New Yorker with a notorious reputation in business-dealings and no political experience.  

Trump played on the growing fear of White America that they are becoming marginalized by immigrants.  Whether this fear is real or imagined it did resonate well with the Trump campaign. Hillary countered that argument. It would have been prudent for her to either ignore it or place less emphasis on it. She could have stated how tough Obama has been on deporting illegals.  

 

Trump had a winning strategy - appeal to the majority white voters in the rust belt, even if it means keeping the KKK in camp. He said he could shoot someone in 5th Ave and not lose a vote. He said Republicans are dumb enough to lap up anything he said.

Hillary ram from Obama - on TPP and on the Middle East. Obama did not help her by articulating the enforcements in TPP and how the Europeans didn't do their share and now have to have Syrian refugees. And Trump didn't mind lying to Americans that the San Bernadino and and Orlando shootings were by Syrians who just landed off the boat in their millions - hehehe.

Where is Biden when you need him and his running mate Elizabeth Warren! Hillary clearly cannot win anything Presidential - too much Bill (black incarceration; weak NAFTA with none of the builtin clauses like environment protection, child labor, collective bargaining and currency manipulation, etc. like TPP which also keeps China out; Glass-Stagal repeal that partly aided the 2008 Great Recession).

Now that he is President watch the fight between him and Ryan/McConnell.

Kari

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