Bull run to continue post election?

While Trump related stocks like $Trump Media & Technology (DJT.US)$ and Bitcoin have surged in the past weeks as market expects a Trump wins, such stock and Bitcoin are also very volatile and do not suit my risk profile. Hence, instead of choosing sides, I agreed with Kathlyn that we could choose sectors that will benefit notwithstanding which candidate wins. The housing sector will be one of such beneficiaries as the policies of both candidates support homebuilding companies. Some of the notable names in this sector are $D.R. Horton (DHI.US)$ $Lennar Corp (LEN.US)$ or ETF  $Real Estate Select Sector Spdr Fund (The) (XLRE.US)$. The subsequent interest rate cut also will positively impact the sector.

There are also concerns on the tax policies to be pushed by both candidates. However, we should also note that it is common for American voters to support one party for the presidency and another for Congress. This often results in "divided government" and can make it challenging to pass certain policies such as the tax policies.

It is observed that bond yields have continued to rise even as the Fed cuts rates. This could partly be due to the overly optimistic market expectations for rate cuts and the potential Trump's win, which his policies tend to drive inflation higher. This has also affected the performance of my dividend portfolio as S-REITS retraced quite a bit in the past one month. Notwithstanding, I will continue to add on the position at the support level until I have achieved full allocation.

Last but not least,  historical data shows that the stock market tends to go up almost every time during the US election years. We should see market stabilise and volatility to subside post election. Let's all hope for a good Santa Claus Rally post election!