“A Year of Shocks” Rachel Agnor, Riley Nees, Asher Mazaika, Charlie Lapolla, Steven Gundersen, Mike Novak Section A Laurel 1

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Rather than causing minor changes in the U. S Rather than causing minor changes in the U.S. bond market that last for only a short period of time, the United States election has created a lasting shift in the U.S. market. 3

United States Britain Japan Germany 4

The bond yields increased as stock prices increased through the election’s impact because of the: Expectation of fiscal stimulus because of tax cuts and infrastructure spending Expectation that Trump will boost the U.S. economy Expectation that inflation will increase in medium-term Election Impact US 10 Year Gov Bond Yields Dow Jones Industrial Average 5

Trump’s Promises/ Expectations Presidents affect policy, regulation, taxes, ect. that impact the economy. Below list a few key promises Trump made that would have large impacts the the U.S. economy: Corporate tax reform To provide relief to U.S.-based companies outside the country Reach a 4 percent growth rate Invest $1 trillion in the nation's infrastructure Create 25 million new jobs 6

Trumps changes to U.S. 7

Are Expectations Exaggerated? 8

Government debt-to-GDP ratio Pension funds and insurance companies 9

In Summary 2016 U.S. Presidential Election resulted in major market changes, in which trillions exited the bond market Changing economic conditions, specifically higher economic growth and inflation, are coupled with higher bond yields 10