Is it the Trump trade or is it economic growth? Even after the initial reaction to the election resulted in a sharp appreciation in cyclical stocks on the hopes for deregulation, tax reform, economic stimulation, the market has remained remarkably resilient as timelines for all of these changes have been extended. As we look at the market opportunities and risks over the next 6-12 months, we believe that the strength in the pro-cyclical areas of the market are more of a reflection of the synchronous global expansion and the continued healing of the US economy than just the positive benefits of a pro-business government.
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