Specifically, the U.S. presidential election has triggered more volatility in U.S. stocks, U.S. bonds, gold, and commodities.

U. S. Treasury Bonds

Due to the return of inflation and mounting U.S. budget deficit, as much as concerns about yields have grown significantly since October. Moreover, the yields continue to soar as Trump wins U.S. presidency election. Now, republican clean sweep will make it significantly easier to implement its fiscal policy in the U.S., which could further increase the yields.

Longer-term trends will still base on economic fundamentals, while the U.S. government’s budget deficit will significantly affect the term spread. Currently, there is a widespread consensus that the U.S. Treasury yield curve may steepen.

U.S. Stocks 

When short-term investor sentiment is high, tax cuts and easing regulatory have a positive effect on corporations, the market appears to be favourable to small-and mid-cap stocks, financials and value, etc. It’s worth noting that a continued rise in long-term U.S. Treasury yields may put higher pressure on U.S. stock market valuations. In particular, when inflation or even stagflation makes a comeback, both stocks and bonds may decline simultaneously.

Gold

Trump’s “America First” policy may escalate trade frictions, while his fiscal plan will further raise the U.S. fiscal deficit. From a long-term perspective, as a natural currency, gold is considered as a reliable investment over the long term. However, in some cases, overpricing gold prices is partly a result of some investors taking profits in the short term.

Commodities

Generally speaking, the most common commodities are energy sources like crude oil, etc. Trump’ preference for traditional energy sources may further increase the U.S. energy supply. From the supply and demand relationship, as there is no shortage of crude oil, the increase in U.S. production capacity may not necessarily be conducive to favourable oil prices.

Virtual Assets

Trump’s support for cryptocurrencies could push several digital assets such as Bitcoin to a surge in price. And he advocated for a strategic bitcoin reserve, positively influencing the cryptocurrency market. In fact, the price of Bitcoin hit an all-time record sparked by Trump’s election win rolls on.