For Immediate Release
Chicago, IL – November 10, 2016 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include SPDR Dow Jones Industrial Average ETF (NYSEARCA:(DIA - Free Report) –Free Report),ProShares Short S&P500 ETF (NYSEARCA:(SH - Free Report) –Free Report), Grupo Aeroportuario del Sureste, SAB de CV (NYSE:(ASR - Free Report) –Free Report),ETF SPDR Gold Shares (NYSEARCA: (GLD - Free Report) –Free Report) and iShares 20+ Year Treasury Bond (NASDAQ: (TLT - Free Report) – Free Report).
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Here are highlights from Wednesday’s Analyst Blog:
Trump Triumphs: Stocks and ETFs to Rock or Shock
Republicans have won back the White House with its candidate Donald Trump trumping several popular polls and defeating the favored Democratic nominee Hillary Clinton. The S&P 500 stock market index was one of the leading indicators among the very few forecasters that put Trump ahead of Clinton. The index viewed 86% chances of Trump winning. And true to its strong reputation of being correct (86.4% of the time since 1928), this time too, the gauge did not let down market watchers.
Needless to say, election 2016 echoed Brexit -- both defied popular polls. Basically, Trump took over most of the swing states. With this, Republicans also took control of both the House and Senate, leaving the world to speculate what changes await them. It is widely apprehend that Trump’s polices toward the U.S. and abroad will spur volatility (read: 10 ETFs to Watch Today and After The Election ).
Broader Market Slump
Republicans do not have a good reputation of pushing the market higher with average annual return of the Dow Jones Industrial Average being 3% since 1900, against 7% returns seen in Democratic rule.
As a result, a market crash is well expected as the unprecedented or rather market-unfriendly event is not priced in at the current level. Just as Trump started giving cues of a win, Dow futures plunged more than 790 points or 4.5%. Nasdaq futures were off 5% at the time of writing. U.S. dollar futures are also on downhill ride (read: 9 ETF Ways to Guard Against S&P 500's Losing Streak ).
Barclays sees a 13% plunge in the S&P 500 on Trump’s victory and Citi projects an immediate crash of up to 5% for the S&P 500 on Trump’s triumph. Stay away from SPDR Dow Jones Industrial Average ETF (NYSEARCA:(DIA - Free Report) – Free Report), rather bet on inverse ETFs like ProShares Short S&P500 ETF (NYSEARCA:(SH - Free Report) –Free Report ).
Leave Mexico/Short Mexico
Mexico peso is a Trump-unfriendly investment due to his plans of building a wall along the border as part of his immigration strategy and making Mexico pay for it. Mexico peso slumped over 12% to record low on cues of Trump’s victory. Skirt Mexican stocks like Grupo Aeroportuario del Sureste, SAB de CV (NYSE:(ASR - Free Report) – Free Report).
Gold Bullion & Mining Stocks to Dazzle
The initial impact will be a safe haven rally. And so far, what Trump has delivered in speeches is mostly “ inward looking,” as per ABN Amro. As per the research organization, Trump’s policies may hinder U.S. growth and cause an upheaval in the domestic market pushing the safe-resort gold andETF SPDR Gold Shares (NYSEARCA: (GLD - Free Report) – Free Report) higher.
Treasury a Treasure Trove
Thanks to a flight to safety, yields on long-term U.S. Treasury bonds should come down and bond prices should rise.iShares 20+ Year Treasury Bond (NASDAQ: (TLT - Free Report) – Free Report) should thus gain after Trump’s victory. Let’s not forget, he is ‘alow interest rate person ,’ boding well for bonds.
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About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
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