Health-care, energy among sectors buoyed by Trump win

Expectations of rate hike and stronger U.S. dollar has hurt consumer and technology stocks.

Bryan Borzykowski 16 November, 2016 | 6:00PM
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In the days leading up to the U.S. presidential election, many pundits had predicted steep market losses in the event of a Donald Trump win, but the reality has been anything but. As of market close on Tuesday, the S&P/TSX Composite Index had gained 0.7% since Election Day, while the U.S. market was up 2%. But these minor budges don't mean there weren't any major movements after the election results came in. Some companies and industries saw big swings, depending on whether investors felt they would either benefit or suffer from a Trump win.

Three broad sectors In the United States have experienced larger-than-market moves since Nov. 8: financials jumped by 6.9%, health-care stocks climbed by 3.4% and industrial companies rose by 4.8%. Financial companies climbed the most for two reasons: It's expected that Trump, despite railing against Wall Street, will reduce regulations on banks. Many people also think that interest rates will rise under a Trump presidency -- partly because of higher inflation, though he's also said that rates should be higher-- and that benefits financial companies, says Norman Raschkowan, president and portfolio manager at TenSquared Investments.

Health-care stocks moved higher after Trump's win, since there had been fears that Democratic candidate Hillary Clinton would cap drug prices. While her loss was good news for health-care equities in general, U.S. biotechnology stocks had a particularly positive day on Nov. 9, climbing by 7.8%. "There was a risk for price cuts," says Raschkowan, "but people are now saying that the environment is going to be better for these companies."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alaris Equity Partners Income Trust Units18.51 CAD-0.54 Inc3,427.74 USD0.37Rating
Conagra Brands Inc33.59 USD-0.34Rating
Great-West Lifeco Inc37.23 CAD-0.43Rating
Hormel Foods Corp41.72 USD-0.39Rating
Manulife Financial Corp25.28 CAD0.92Rating
Netflix Inc642.89 USD2.84Rating
Smith & Wesson Brands Inc21.48 USD0.66
Sturm Ruger & Co Inc79.74 USD0.57
Sun Life Financial Inc70.11 CAD0.52Rating

About Author

Bryan Borzykowski

Bryan Borzykowski  Bryan Borzykowski is a Toronto-based business and investments writer. He’s contributed to the New York Times, CNBC, BBC Capital, CNNMoney and several other publications. Bryan’s also written three personal finance books and appears regularly on CTV News.

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