BMO: Big Banks Have Much More Trump Upside

Is their more Trump upside to come? Looking at the dramatic rise in the stock market since the election, questions regarding valuation abound. Is perfection and complete cooperation between Republicans and the Trump administration priced into the election? The S&P 500, for instance, posited its largest gains after the Trump election, more than was recorded during the entire aftermath of the Great Recession. The S&P 500 added 129 points, or 6% post-election – with upside price volatility surpassing historical ranges. The small-cap Russell 2000, a considered benchmark for US domestic economic activity, made the argument for an expected strong market environment under Trump, voting by being up 13% since the election. Even though the small-cap sector is known for its...