Citi strategist talks about how to trade Trump's victory: Republican take-all is a signal to sell U.S. stocks
The prospect of Mr. Trump's re-election as US president has spurred a rally in the country's stock market, but in the eyes of strategists at Citigroup, a Republican victory would be time to walk away. Mr. Trump's victory is usually seen as a stock market boon, as the idea of lower corporate taxes could boost corporate earnings. However, Citi strategists believe the "near-frenzy" that has driven the S & P 500 up for six months suggests the time is ripe for a pullback. "Given the fundamental uncertainty we expect in a Trump plus Republican scenario, we tend to unwind in any post-election market," said Scott Chronert, strategist at Citi.