Trump-Sparked Rallies in Financials, Healthcare Stocks Have Room to Run

Put all those Clinton administration investment plans away. It's time for the Trump playbook, says John Stoltzfus, chief investment officer at Oppenheimer & Co. "Rallies by stocks in the financials, healthcare, 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 Stoltzfus. Stoltzfus 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 U.S. economy. He added that the gains in financial and healthcare 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. As for international trade under a Trump administration, Stoltzfus says 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."