Donald Trump was seen as a wildcard presidential candidate, and his actions since Election Day have confounded investors in certain sectors of the market.
Biotech
Biotech investors were extremely uneasy about the possibility of Hillary Clinton as president. Clinton made tackling rising prescription drug prices a centerpiece of her campaign, while Trump was mostly silent on the issue.
However, in his recent interview with Time, Trump dropped a biotech bombshell.
“I’m going to bring down drug prices,” he said. “I don’t like what’s happening with drug prices.”
In the year leading up to the election when most major polls showed Clinton in the lead, the iShares NASDAQ Biotechnology Index (ETF) IBB 0.57% fell 20.9 percent.
After initially spiking more than 11 percent immediately following Trump’s victory, the IBB has now given up all but 2.2 percent of its post-election gains.
Defense
Defense investors are also getting frustrated by Trump. Prior to the election, Trump has said he would ramp-up defense spending in the next decade by eliminating a sequester that would add $500 billion to the defense budget. However, in the past week, Trump has blasted…
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