Quants And Macro Funds Responsible For Trump Stock Rally: RBC

Quant Trap saved P&L for hedge funds? That is a new interesting story from one of our favorite analysts.

The incorrect consensus view that a Donald Trump victory would lead to market disaster has given way to a new, “dawn of a new day” consensus.  In what has become the popular meme, “animal spirits” will be unleashed by a Donald Trump deregulatory and tax push. Never mind the inconsistent Trump statements relative to actions -- appointing a deficit hawk, Congressman Mick Mulvaney (R-SC), as budget director while advocating for massive fiscal stimulus, as just one example – Trump will deliver, is the mantra, which has led to a strong stock market rally since the election. But this could be...