Analysts explained in a note this week that when Donald Trump won the 2016 U.S. presidential election, the overall market response was muted, but significant sector-specific moves occurred.
According to analysts, bonds and bond proxies, such as utilities and REITs, sold off as investors anticipated an expansionary fiscal package and lower corporate tax rates. Traditional energy stocks, led by coal producer Peabody, which jumped 50%, rallied while alternative energy stocks sold off. Defense stocks also rose.Analysts observed that small-cap stocks, including for-profit prisons and colleges, saw some of the largest moves. Interestingly, gun makers, which were shorts in the Clinton portfolio, fell about 15% as the threat of gun control diminished, leading to an expected drop in gun sales.