The Trump trade that could have more to run as overall market loses steam

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Stock Markets,Bank Of America Corp,Donald Trump

Stocks were closing out a losing week as last week's election rally fizzles. But bank stocks could keep their momentum, according to one market strategist.

Bank stocks have popped since President-elect Donald Trump's win, but their move eight years ago suggests this rally still has more upside. Wells Fargo strategy analyst Christopher Harvey published a note Friday examining how different sectors performed after Trump's win in 2016 relative to their rally in the 7 trading days following the most recent election. The data shows that financial stocks, while already one of the best performers this year, did even better in 2016.

5 percentage points, compared to 6.9 points this year, according to the note. Bank stocks have seen big moves since Trump's win, as investors react to the expectation of a lighter regulatory touch from his administration. Shares of Bank of America are up more than 9% since Election Day for example. And while postelection rally for the broader market has cooled this week , bank stocks still look like one of the bests going forward, Harvey said.

 

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