welcome back to Yahoo finance uh look usually this is a uh taped uh podcast called opening bid I start every podcast saying uh this is the podcast that will make you a smarter investor but today we're live from the market site the day after the big presidential election of course uh don Trump elected the 47th president of the United States and for this podcast I just have to say let's get after it three awesome guests here uh awesome going to put out some really interesting context on what we did see with stocks we have Maria
vitman state Global markets head of equity research we have uh Bill Blaine windshift Capital founder and friend of the show Keith learner co-chief investment officer and chief Market strategist at truest all right guys in the spirit of getting after Keith let me start with you major uh move here in the early going for markets simple question is it too much is it too soon well first Brian excited to be with you finally the election is passed at least the day I don't know that it's too much too soon I mean this if you think about
it coming into this there was a real contentious between you know the outcome and it was 50/50 so once you gain some clarity and it looks like this won't extend or be a contested election there's a relief rally and if we just use 2016 as an example realizing that was a different period you know you did have a pretty good reaction right away and then it lasted for over the the next month I will say though what it appears is that the market initially is focused on all the potential depositors of of a trump cacy
as far as lower regulations lower taxes and not really focus on some of the counterbalances which could be the tariffs maybe the FED moving a little bit slower and we still have uncertainty around the house so again I think the underlying trend for this Market is still positive Brian but but um you know there are some things as we move past this that will likely cause some more swings in the market not just one directionally uh Bill let me get over to you because I know uh you've been on opening B before you're a non-nonsense
guy what are some of the potential negatives you know we're seeing the market really fly to a lot of the positives potential positives of a trump presidency what are the negatives that you see that investors need to keep in mind okay well the big negative for me is I'm across here in Georgetown this morning I came over to watch the election last night and joined some friends and really very interesting to watch but I'm paying the consequences of too many flights too quickly I'd agree completely what we've got going on just now is a Rel
Le rally I think once the market settles they're going to figure out that okay we're going to have to rethink treasuries I then think we need to think about the wider geopolitical issues and that's one thing I really haven't heard much about during the election what's going to happen uh in terms of where the US remains AS Global hedgemon in the global economy and and whether it CH chooses to be so so let's see what happens with uh Ukraine let's see what the noise around that is let's also see how Europe and the Allies react
to Trump's uh Victory I think that will'll very quickly gather around them and seek to build uh positive links and I don't think we need to panic too much about the dollarization trade however I do think there'll be a lot of push back globally on some of the things that will change in the US economy such as the deregulation of crypto deregulation of uh the banks not joining in the next version of ball and also what happens with tech um as for the tariffs if that goes ahead I think that's going to cause an enormous
amount of international push back on the US and will possibly create more problems than it can possibly solve Maria let me get you in here of course you have that really great Global Perspective I mean is this a market that needs to take a breather here today and maybe they maybe they should be a little panicky about Trump in his first 100 days coming out here and slapping the world with all sorts of tariffs yeah hello uh actually I'm I'm going to be probably more more constructive more positive and looking from abroad uh I mean
it looks quite clear that us will continue to maintain its exceptionalism particularly us markets so like us clearly us talks clearly winner here and Europe and emerging markets and Asia look kind of on the downside so uh so US Stocks look more more positive for us and Tech sector still I mean I've been big fan of tech sector and the biggest risk for Tech sector was regulation uh if a Democratic candidate wins or get Democratic uh sweep and that's not what we're getting so your US Stocks look attractive relative to the rest of the world
and within us we still see Tech having lots of potential so really ironically you probably have your us tax stocks as being a safe heaven here Let's uh I want to try to go around the horn uh zeroing in on I think on some of your individual areas expertise Keith let me go to you big Federal Reserve meeting coming up right now and now president Trump has not HED or president-elect Trump I should say has not hidden his distaste for uh Federal Reserve Chief Jerome pal uh but is it important that pal keeps this job
to see through the rate cutting cycle he now just started and what's the risk to the markets if Pal's not a top the Fed well I don't think there's a large risk that he is going to be moving anywhere soon like his term is not over uh I think I believe it's 20126 so I don't think it's a near-term concern beyond that you'll just hear more rhetoric and I think that's the way to think about it uh as we learned from the last uh Trump term we have more day-to-day rhetoric and for what we do
our jobs day-to-day we'll be writing more because there will be different things that come out we have to this kind of decipher what is noise and what's a negotiation PL but I think even this week I it was interesting is the the fed's important but it's probably not as important as it has been Market's still pricing in above 90% chance of a rate uh cut I think what happens really is more about the policies that Trump has and what does that mean for growth what does it mean for inflation and and interest rates we're seeing
move on the move today as well and you know if we if we look at all this together it likely means whatever the path before the Fed was before they're probably going to move a little bit slower if we have a little bit stronger growth a little bit more inflationary but overall would prefer an economy that's strong that supports earnings to an economy that needs more rate Cuts because it's because it's weakening Bill uh you're my Tesla guy we talked about Tesla the last time you were on shares up about 13% here in the pre-market
what do you think happens to Tesla look I it's it's likely not the the musk joints the government he has companies around SpaceX Tesla but the market is thinking that he's going to be able to influence Trump suddenly the world's going to be filled with Travelers cars and Tesla's earnings are going to Triple over the next five years tell me why I'm wrong oh geez well that's a tough one uh just come back very quickly on the issue of uh treasuries though because I think that's going to be a great source of frustration to Trump
because we are going to be heading into a very inflationary environment Global Supply chains are not fixed and if he imposes tariffs that's going to push up inflation going on to Tesla well you know what Tesla was one of the shorts that I was was proposing if Harris had won last week I I did put out a thing saying that I thought Harris was likely to win and that was a contan trade against the general uh expectation of a trump win um clearly that's not going to happen now Tesla has taken this boost this morning
and I I suppose that kind of goes with the whole narrative about t Tesla it's all about musk and what musk's going to get and if musk does get this role as what's it you know Department of government efficiency and the first thing does deregulate the whole thing about uh self-driving then that is finally going to be something you can say is really different and valuable about Tesla uh but you know I I suspect that this is probably boosterism and it's not going to be longterm um I think though there are some fantastic things that
could well happen for musk in a new government and one of the things I I sort of jokingly commented about last week uh imagining Trump's second year is that uh Tesla and musk come or musk comes in with his undoubted skills and rescues the aing B Boeing joins it with SpaceX and creates something new and really exciting hey so there you go something positive about Tesla well well we we we'll Circle back on that bill last minute to you here Maria buy or sell the mag seven oh definitely by absolutely 100% I mean that's pretty
much the area which still has strong earnings grows anywhere in the world so definitely buy that so you think the earnings power the MA 7 will will be stronger under President Trump uh I mean I just don't see earnings power anywhere else in the world so so in a world where money are coming to equities Tech looks spectacularly better than anything else absolutely great analysis guys a little bit of everything here on the opening bit podcast uh Bill we're going to circle back on that Tesla call I mean we got let's take that offline as
they say in our industry uh Maria vitman State Street Global markets head of equity research Bill Blaine windshift Capital founder and Keith learner co-chief investment officer Chief Market strategist of truist thank you this is a very busy day thank you for joining a live episode of opening bid we'll be right back on yaho finance with much more analysis on all things the day after the election
