It was a November to remember in the equity market, with some of the most speculative assets generating the most outsized returns in the weeks following Trump's election, among them Bitcoin (+31%), spec tech (ARKK +23% even as the AI complex went nowhere), US banks (+14%), and small caps (+10%); it was much less pleasant month for some recent winners such as a gold miners (-8%), and as for chronic losers, it was just pain piling on more pain, with China (-6%), and renewables (-10%) continuing to sink fast. The catalyst: a financial world turned upside thanks to Trump and thanks to what BofA's CIO Michael Hartnett calls "big policies, big moves, big tails."
Looking ahead, Hartnett sees more of the same: the acceleration of big policies, big moves, big tails means that investment backdrop heading into '25 is one of big US-RoW economic decoupling between aggressive US growth/trade policies set to exacerbate US boom/global bust...
