What’s Driving the Strong Market Reaction to Trump Win

Markets are clear about what Donald Trump plans for his return to the White House: Stocks are up, the dollar and Treasury yields soared, and so did banks and bitcoin. 

All are easy to fit to Trump’s promises. Corporate tax cuts almost automatically boost stocks, tariffs almost automatically mean a stronger currency, bigger deficits mean higher bond yields and easier regulation helps bank stocks and bitcoin.

Whether this knee-jerk reaction proves right in the longer run is another matter.