Opening Statement from the November 2016 Dividend Gems

Opening Statement from the November 2016 Dividend Gems

Originally published on November 21, 2016 (pre-market release) 

In the November 2016 Opening Statement we concluded that no one can know for certain how the markets will react to the results of the election. This proved to be the case. Although Trump won the election, the stock market rallied during normal trading hours the day following the election results, creating confusion for most investors who were expecting a sell off.

What Caused the Wild Swings in the Stock Market?

In order to understand why the stock market rallied, we must look at market activity before, during and after the election. ⁵

In the early stages of the November 8^th election day, traders indicated they felt Trump might win, as the e-mini Dow Jones futures were in the red. Once most of the votes had been tallied showing Trump with a comfortable lead, the Dow futures