Elected on the night of November 5-6, the markets didn't wait for the opening to climb. This general rise in the market is not linked to the fact that the elected candidate is a Republican, but more to the fact that the situation is known, and therefore predictable. As we all know, uncertainty is one of the investor's greatest enemies. Our trio of S&P 500 , Dow Jones and Nasdaq 100 indices rose the day after the election by +2.53%, +3.57% and +2.74% respectively. It is worth noting that the Russell 2000 , often considered a barometer of US domestic equities, also benefited from this trend, gaining from this trend, gaining 5.84% post-election, bolstered by the Fed's 25bp rate cut two days after the election.

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However, Trump's election really had a big impact on certain sectors, which tells us a lot about the future president's political agenda. Firstly, with its policy of deregulation and corporate tax cuts, the Trump administration intends to pave the way for increased exploitation of American soil. This initiative is designed to boost fossil fuels, while green energies, often dependent on state subsidies, are relegated to the background (notably wind power and photovoltaics). As a result, the S&P Global Clean Energy index lost 6.08% post-election, while the S&P Oil & Gas Exploration & Production Select Industry gained 5.30%.

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The prospect of deregulation for US banks sparked growing optimism in the markets, recalling the bullish trend seen after the 2016 election, when banking stocks rose by 20%. The anticipation of more lenient regulation, potentially favorable to mergers, is all the more anticipated as changes in leadership are expected in the main federal regulatory agencies (SEC, FDIC, OCC,CFPB). The repercussions on banking stocks are already being felt, with notable post-election rises for Citigroup (+8.42%), Goldman Sachs (+13.10%), Bank of America (+8.43%), JPMorgan Chase (+11.54%) and Morgan Stanley (+11.61%). This was all it took for the S&P 500 Banks Index to gain 10.68%.

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The United States' isolationist stance, which is gaining strength under President Trump, has particular implications for the defense sector. Indeed, President Trump plans to reduce the distribution of weapons and military equipment, especially to Ukraine and Israel. In the context of his re-election, we can nonetheless anticipate an increase in military budgets, which would represent an increase in government orders. In addition, rising tensions with China could also lead to increased investment in cybersecurity and advanced military technology. The S&P Aerospace & Defense Select Industry is up 3.84% in the wake of the election. Curtiss-Wright (+4.74%), a position in our USA portfolio, and Heico (+3.31%), a recent addition to Warren Buffet's portfolio, also performed well.

Finally, the healthcare sector is gearing up for major reforms under the Trump administration, with a likely overhaul of Medicaid and an uncertain future for Affordable Care Act (ACA) subsidies, which are unlikely to be renewed. These changes could have an adverse impact on companies linked to these government programs, such as Molina Healthcare (-2.16%) or Centene (-3.46%). At the same time, this shift towards privatization could increase the need for private coverage. This could benefit health insurers such as UnitedHealth Group (+5.23%), Humana (+10.71%), or Alignment Healthcare (+6.55%). Trump is also considering reforms to federal health agencies such as the NIH, following Republican criticism of their handling of the pandemic. This could prove negative for Pfizer (-2.25%) and Moderna (-2.78%), which are already involved in legal disputes.

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Detention and eviction stocks such as GEO Group and CoreCivic jumped by a spectacular 42% and 29% respectively after the election, followed by a second rise of 13.63% and 25.60% the day after. These stock market movements reflect investors' anticipation of the very strict detention and deportation policy.

Last but not least, Trump Media, the president's social network, was up 5.94% after his victory, only to be caught up in reality and lose 22.96% the following day. Elon Musk, Trump's new lieutenant, can boast that Tesla gained 14.75% after the election. Our crypto enthusiasts will also be pleased to see Bitcoin jump 8.86% after the Republican candidate's victory, which has made crypto-currencies a subject of less regulatory concern, suggesting a potentially more favorable environment for their development and integration into the traditional financial system.