Goldman Sachs still expects the Federal Reserve to continue lowering interest rates, and small cap stocks deserve more attention.
Goldman Sachs stated: "Although the results of the usa election have increased the uncertainty in economic trends, we still expect the Federal Reserve to continue lowering interest rates in December and early 2025."
Express News | The e-mini russell 2000 index fell by 0.9%, reaching a new low since November 5.
Citigroup aggressively increased its shareholding in Tesla (TSLA.US), while also accumulating put options on the russel 2000 etf and reducing its shareholding in microsoft (MSFT.US).
Citigroup's total position value in the third quarter reached 173 billion US dollars, compared to 156 billion US dollars in the previous quarter, a 11% increase.
Trump's trade vs. Powell's panic: How will the global market decide this week?
①After the risk assets went crazy following the election, investors in the US stock market finally began to calm down last week; ②Fed Chairman Powell seems to be intentionally slowing down the pace of interest rate cuts, which has cooled the excitement generated by the 'Trump trade'.
Express News | E-mini Russell 2000 index fell more than 1% intraday.
The 'Trump trade' of the 2016 version completely reversed afterwards, what about this time?
After Trump's election victory, the US dollar, US stocks, and small cap stocks usually tend to strengthen. However, during Trump 1.0, from 2016 to 2020, the US dollar and small cap stocks performed poorly, failing to rise as expected, while the rise in US stocks was mostly attributable to the strength of technology stocks. Analysis suggests that the 'Trump trade' is not the same as 'Trump investment', it is more of a short-term market reaction rather than a long-term trend.