View of the New York Stock Exchange building on Wall Street. Photo: Reuters/Lucas Jackson
View of the New York Stock Exchange building on Wall Street. Photo: Reuters/Lucas Jackson

Trump trades are soaring, tech trades are tanking. The Russell has largely been a tax cut play: smaller companies benefit more from a tax cut because they lack the inventive means that Apple and other tech companies use to shelter income (by assigning huge royalties for the use of intellectual property to subsidiaries in low-tax havens such as Ireland).

After Friday’s surge of more than 2%, US bank stocks are up another 0.4% today, largely on hope of reforms to Dodd-Frank. The Trump trades came back with a vengeance last Wednesday, when former FBI Director Comey trashed Trump but offered no evidence that might actually hurt him. The discrepancy between perceptions in the largely hostile news media and the deployment of real money by investors is huge.