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

2. 2

3. 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

4. United States
Britain
Japan
Germany 4

5. 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

6. 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

7. Trumps changes to U.S. 7

8. Are Expectations Exaggerated?8

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

10. 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