Editors' pick: Originally published Nov. 10.
From a financial markets perspective, election night was the equivalent of a Roman candle - lots of sparks but no real detonation.
Yes, stock futures fell by 800 points as the tide turned toward Donald Trump on election night. But the U.S. stock market not only calmed down the day after the election, the Dow Jones Industrial Average actually rose, by over 200 points on Wednesday, and is up 127 points in early Thursday trading.
Wild volatility is par for the course on and near U.S. presidential election days. According to Bloomberg, in 22 elections dating back 90 years, the S&P 500 declined 15 times 24 hours after election day, losing 1.8%, on average. But stocks rebounded and climbed higher during the next 12 months nine times.
In fact, the financial markets could be being "short-sighted" over Trump's victory, warns a leading investment analyst at one of the world's largest independent financial advisory organizations.
"Against most analysts' predictions, the S&P 500 ended yesterday in positive territory," notes Tom Elliott, deVere Group's international investment strategist, on November 10. "In doing so, the S&P 500 Index wiped out a 5% loss by the end of trading that had been triggered by Donald Trump's surprise presidential election victory. "
Elliot says investors should focus on three planks of Trump's economic policy that are seen as beneficial to the U.S. stock market.
"First, there will be less regulations on certain sectors," Elliot says. "This will help banks, if repealing Dodd-Frank occurs, and will help mining and energy, if environmental laws are repealed. Plus, abolishing Obama's Affordable Care Act and the government's pressure on pharmaceutical companies to reduce drug prices to European levels, would boost pharma stocks."