Markets and Trump's win

POST-ELECTION: A LOOK AT WHY THEY RALLIED

- Matthew Matthee

As the year winds down, many of us are looking forward to the holidays. It's been a fantastic year in the markets, with portfolios hitting all-time highs.

The US election is over and there's at least a sense of relative calm. The return of the US markets this year were up almost 30%. A 30% return in a single calendar year might seem extraordinary, but history tells us otherwise. Over the past 100 years, there have been 18 instances where the US market gained 30% or more in a year.

That's roughly one in every five years or 20% of the time.

So, why is the market running? Why did the market jump at the election result?

I found some observations comparing the expected spending and tax plans of both the Donald Trump and Kamala Harris campaigns.

This is a fascinating breakdown of their planned fiscal expenditure (how they planned to manage the US budget's income and expenditures). It gives us clues as to why the markets reacted the way they did.