Since Donald Trump won the 2024 Presidential election, various trades have had fits and starts as the President-elect names cabinet members and discusses potential economic policies.
For instance, small caps took off right after Trump’s win, before cooling off, and then eventually reaching record highs. The same could be said for a vaccine stock like Moderna (MRNA). Shares tanked when Trump nominated known anti-vaccine advocate Robert F. Kennedy Jr. to head the Department of Health and Human Services, but are now back near the same levels it was trading at before the nomination.
These jerky stock moves are just one example of how market participants remain uncertain on the difference between what Trump says will happen and what will actually happen.
“There will be traders that will try to play every sentence, every move and I think that’s kind of a loser’s game because he can change his mind,” AlTi Tiedemann Global CIO Nancy Curtin told Yahoo Finance. “In concept, he’ll do what he said he would do. But the actual implementation remains to be seen.”
Curtin’s advice for longer-term investors is to stay focused on the current trends that are more likely to definitely be in tact in 2025.
“We think the fundamentals look pretty good,” Curtin, who noted she’s optmistic about US equities in 2025 said. “Earnings look pretty good. And by the way a little animal spirits, M&A, IPOs would also enhance trajectory.”
