Trump's economic policy expectations are positive for cyclical stocks before the midterm elections

On January 13th, Wall Street interpreted Trump's recent economic statements as a signal to promote growth, betting that he will fully stimulate the economy and consumption before the November midterm elections, which will benefit cyclical sectors such as industry, raw materials, and non essential consumer goods. UBS believes that the relevant policies are more election oriented, focusing on prices, housing, gasoline, and interest rates. Although the idea of a credit card interest rate cap is expected to suppress bank stocks in the short term, both UBS and JPMorgan are optimistic about the performance of cyclical stocks, and expect that the slowdown in inflation will further drive economically sensitive sectors to outperform the market. BTIG pointed out that the S&P 500 index is approaching the integer level of 7000 points, or there may be a volatile adjustment. Most institutions believe that cyclical stocks are expected to become the main trend of this round of market.