Trump Wrecks the Dollar

If you’re ever curious if a stock you own is a defensive stock, a quick test would be to see if it rallied on January 17, 2017. If it did, then there’s a good chance it is.

What we’re seeing today is a classic rotation pattern. Financial stocks are down the most, while Staples and Income stocks are up the most. As always, there are some outliers. For example, Healthcare is dragging a bit today.

Overall, this would be a Quadrant III day (see here).

The U.S. dollar is down today after President-Elect Trump said the greenback was too strong. “It’s killing us,” to be precise. That kind of news is generally bad for an investment.

British American Tobacco said it will buy out the remainder of Reynolds American (RAI) it doesn’t own. RAI is a former Buy List stock. We had a great run in the stock, but in retrospect, we sold way too early. The BAT deal comes to $59.64 per share. We sold four years ago at $20.72. (Ugh!)

Posted by on January 17th, 2017 at 12:15 pm


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