Bernstein Quants Say Trump Victory "Cuts Against Improving Inflation"

As the Dow Jones Industrial Average was sprinting to new record highs in the wake of the Donald Trump Presidential victory, it was a AB Bernstein quantitative report that determined the election results were “risk-off” in nature and it “cuts directly against the recent narrative of improving inflation and growth.” With central bankers pining for inflation, any sign of economic weakness cutting into this inflation and growth narrative is construed as a heightened risk amid a world of quantitative easing.

Bernstein - High policy uncertainty will lead to de-risking and threaten positive signs of growth and inflation

Never mind that the...