Put all those Clinton administration investment plans away. It's time for the Trump playbook, said John Stolzfus, chief investment officer at Oppenheimer & Co.
"Rallies by stocks in the financials, health care, and energy sectors, which had been considered at risk in the event of a Clinton victory, suggest a likely change of fate under a Trump administration," said Stolzfus.
Stolzfus said prospects for a reduction rather than increase of regulations, an opportunity to see tax cuts for individuals and businesses, including the likelihood of an incentive for U.S. multinational corporations to return profits stateside that were earned abroad, could improve the outlook for business, employment, and the overall US economy.
"We continue to favor cyclical stocks and sectors over defensive stocks and sectors," said Stolzfus. "We expect value to continue to outperform growth, but believe investors should not abandon growth in a low growth period. Our favorite sectors include infrastructure beneficiaries including materials, industrials and information technology."
He added that the gains in financial and health care stocks are not "just a near term pop." And on the flip side he believes the recent selloff in bond proxies like utilities and telecoms is overdone.
Meanwhile, he said the Federal Reserve will likely raise rates in December so long as the economic data continues to support this action, which he sees as negative for gold.
"There are still concerns surrounding President-Elect Trump's comments on the leadership of the Fed, but these concerns might ease in the coming days as his transition process is communicated," said Stolzfus.
As for international trade under a Trump administration, Stolzfus said the rallies in Europe and the overall moderate losses in Asia and Latin America on Wednesday following the election indicate that there is "considerable hope for negotiation in what lies ahead for addressing global trade with these regions."