In the run up to the presidential elections, conventional wisdom held that a Trump win would be bad for risk assets as it would sharply raise uncertainty over the future direction of US economic policy.
That uncertainty didn’t even last the election evening. US equity futures fell dramatically in the first few hours after vote counting started. Yet by the time Hillary Clinton conceded, stock futures were up and the major US equity indexes ended the day up more than 1%. The rollercoaster ride also reflected the reaction among economists – including myself – whose views shifted from the gloom of uncertainty to the boom of fiscal easing.
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