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Speaker 1: Ever du for l So the trunk victory has resulted

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Speaker 1: in some very sharp price moves and the asset prices

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Speaker 1: around the world. As we've been discussing, equities have rallied sharply,

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Speaker 1: bonds have sold off. Question is what's the early read

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Speaker 1: from the markets? What does it all mean for investor?

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Speaker 1: Sam Dickey from Fisher Funds is with us. Hey, Sam, hey, okay,

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Speaker 1: what did very well?

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Speaker 2: Thank you?

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Speaker 1: What did the equity markets think of the victory?

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Speaker 2: Then global it could be your big moves across the

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Speaker 2: board in this Finacia classes, but equities a strong reaction,

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Speaker 2: so about three percent up globally, but it was very

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Speaker 2: US centric. So as a general backdrop, the markets bullish

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Speaker 2: corporate tax cuts, as bullish less regulation, as bush less

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Speaker 2: red tape, and it's sort of pro growth domestic infrastructure spending.

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Speaker 2: But moving to bonds and they sold off, which is

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Speaker 2: the same thing as saying interest rates when happened. This

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Speaker 2: is one thing to keep an eye on. So if

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Speaker 2: you look at US bond yields now they're back at

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Speaker 2: levels we saw way back in July, which was before

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Speaker 2: we saw that bid repricing and feed rate cuts. So

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Speaker 2: people are bidding there that Trump will drive inflation and

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Speaker 2: growth higher, which means higher interest rates.

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Speaker 1: Can you read into it how much they're expecting the

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Speaker 1: interest rates and the inflation to increase.

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Speaker 2: You can't. You can't necessarily map a moving interest rates

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Speaker 2: to a moving inflation. But if you look at what

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Speaker 2: the market's pricing in terms of rate cuts by the

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Speaker 2: Feed twelve months ahead. Back in July, the market was

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Speaker 2: pricing five rate cuts and then it went as far

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Speaker 2: as pricing sort of seven or eight rate cuts at

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Speaker 2: one point in time. Now they're only pricing free rate

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Speaker 2: cuts and the twelve months ahead. So people are expecting

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Speaker 2: that the Trump's going to be reflationary and drive growth,

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Speaker 2: which means the Fed needs to cut rates less quickly.

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Speaker 1: Interesting, Okay, And obviously we've seen the currencies move. Their

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Speaker 1: USD has gone up, Crypto's gone up. How far do

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Speaker 1: you see crypto going off the back.

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Speaker 2: Of this, Well, I mean there's a couple of things

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Speaker 2: coming on there right as one of these obviously very

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Speaker 2: probate call and I think you said, make America at

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Speaker 2: the crypto capital of the planet. So that's all go.

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Speaker 2: And the other thing is which I don't agree with

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Speaker 2: this one, is that some people see cryptos as good

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Speaker 2: inflation head often fation goes up, crypto is a good

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Speaker 2: place to be. Now, that's was not true during the

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Speaker 2: twenty twenty two inflation spokes a bitcorn actually fell by

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Speaker 2: seventy five percent as the far far ago. See either

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Speaker 2: the other people out outside of me, you will be

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Speaker 2: able to give the answer to that, or will be

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Speaker 2: able the answer to that.

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Speaker 1: It's a fascinating one to look at. What have you

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Speaker 1: seen in equities across countries and the cross sectors that

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Speaker 1: you're fascinated by.

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Speaker 2: Yeah, definitely the US is the winner, which shouldn't come

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Speaker 2: as any surprise. But you know, look at New Zealand, Australia,

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Speaker 2: European and emerging market equipments. They're basically flat. And everyone's

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Speaker 2: watching China obviously given the rhetoric, and that was weakest

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Speaker 2: running into the election, but it's held up okay since

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Speaker 2: So that's that's mildly interesting. But under the hood in

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Speaker 2: the US is where all the actions being some huge

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Speaker 2: moves there, so perceived winners are domestic facing this sectors.

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Speaker 2: So to give you a few names, you are steel

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Speaker 2: companies up thirteen percent. Is everyone is expecting the first

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Speaker 2: tariff he will throw in China will be steered back

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Speaker 2: back in twenty sixteen twenty seventeen, US auto manufacturers are

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Speaker 2: like forward up five six percent because of this competition

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Speaker 2: from important orders. And of course Tesla is up fourteen

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Speaker 2: percent because Trump is mates with Elon. And US trucking

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Speaker 2: and rail companies up ten percent, partly driven by this

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Speaker 2: environmental and emission regulation. And this was quite surprising as

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Speaker 2: giant banks JP Morgan up ten percent overnight because he's

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Speaker 2: talking less regulation and many roles to perceived losers sold

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Speaker 2: the companies down twelve. He said that they are part

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Speaker 2: of the new doing scan and his proposed tariffs that

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Speaker 2: will impact that sector. Go figure and just ranom on

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Speaker 2: Cannabis stocks down twenty percent in favor of legalized cannabis.

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Speaker 2: But coincidentally, there was a couple of proposals today yesterday.

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Speaker 2: I think legalized marijuana and Florida are other states that failed.

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Speaker 2: So outside of that, the only other big moves were

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Speaker 2: interest rates sensitive companies were property and utilities. They went

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Speaker 2: down because they want to benefit from this big growth

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Speaker 2: bonanza that's supposedly going to come, but they will get

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Speaker 2: hurt by highlight interest rates so a lot.

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Speaker 1: Of investors to be thinking about with all the stuff.

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Speaker 2: Going on in huge move, and I didn't think it

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Speaker 2: called the market by surprise. I mean, most betting markets

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Speaker 2: were expecting him to win, so it shouldn't have covered

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Speaker 2: such a shock. But I suspect the market was remembering

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Speaker 2: twenty sixteen too well. So remember the market was convinced

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Speaker 2: he win and win, and in the unlikely event he

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Speaker 2: did markets with nose dive and they got burnt on

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Speaker 2: both counts. So maybe once twice shy, Sam.

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Speaker 1: Thanks very much, appreciated, interesting times ahead for you, Sam

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Speaker 1: Dickey for your funds.

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