Risk, Trump and the Great Sector Rotation

While the US equity market has been unusually strong since the US election, the tide has not lifted all boats.

In the period immediately after the vote, some sectors that had been faring wellsuch as Information Technologyreversed course and failed to participate in the rally. Others that had been underperformingsuch as Financialssurged. And, finally, some sectors' returns seemed wholly unrelated to the election. Overall, these changes led to higher dispersion across sectors than we have seen in some time.