Buffalo, N.Y. (WBEN) - Following an election rally for the history books, stocks on Wall Street have soared on the heels of Donald Trump’s decisive victory in the Presidential Election.
"Relief is No. 1," said Michael Angelucci with Level Financial Advisors.
"There was uncertainty and it was a decisive victory. The market was also reacting to a Trump administration, which campaigned on less regulation and lower corporate taxes."
There is usually a bump in stocks after a presidential election, but this was more like investor exuberance.
A decision by the Federal Reserve on Thursday on an interest rate cut is more good news for investors, where a quarter point interest rate cut is expected.
"It's adding to the momentum," Angelucci noted.
"We'll have to see how long it carries over and what appointments Trump makes for Treasury Secretary, and other cabinet positions."
Angelucci cautions that there is another side to watch out for.
"There is some worry about Trump's longer term policies concerning tariffs and deportation. They could both be potentially inflationary," he said.
Small company stocks saw the biggest gains after the election due to the promise of less regulation. The other area that has done especially well is anything related to cryptocurrency. This, too, is because of a favorable regulatory environment.