The election of Donald Trump to the office of President of the U.S. sparked a historical rally in U.S. equity markets. The biggest Dow gainer during that timeframe has been Goldman Sachs. (GS) CEO Lloyd Blankfein spoke about the influence Trump has had on the markets at the World Economic Forum in Davos, Switzerland on Wednesday.
"I think one of the reasons why the elections had such dramatic effect is because it was drawing people in the direction it was already heading," Blankfein said during CNBC's "Squawk Alley" Wednesday afternoon.
Blankfein contended that before the election, the markets had already shown improvement. "The Fed's focus on the likelihood of raising rates, the growth was already in it," Blankfein said. "We were already getting at, or near, full employment, but I think that was already baked in."
When that idea of improvement culminated with the Trump victory, investor sentiment skyrocketed and propelled the markets higher. "Trump's platform is so stimulative that [the market] is just going in the direction of the tailwind," Blankfein said.
It charged people with greater confidence, as the Trump victory unleashed a wave of positive sentiment based upon the president-elect's promise of lower taxes, less regulation, and an increased spending on infrastructure, he noted.
Blankfein stated that he likes Trump's platform embodying a "highly stimulative" course of action, calling the outcome of Trump's victory vs. that of Hillary Clinton's "very favorable."