>> It started within hours after Donald Trump shocked the world by winning the White House. Wall Street whipped into a frenzy in what has become known as the Trump trade. Widespread buying sending stocks to record after record on hopes a Trump White House would lead to looser regulations for banks, corporate tax cuts, and faster economic growth.
But now, the Trump trade is fizzling for the stocks that benefited the most, says Reuters Mutual Fund Correspondent David Randall.>> Perhaps that's over, what hasn't been rallying. And perhaps these tax cuts that we were promised aren't gonna come. So they're moving away from things like financials, industrials, and even some tech companies that were supposed to get a big tax cut.
Instead, they're moving to thinks like retailers. At a time when everybody kinda expects that Amazon is taking over the world, these retailers are priced at absurdly low prices.>> The retreat from banks has been painful, the sector now negative for the year. Not only is the money going to retail names like Under Armour beaten down after slower sales growth last quarter.
Investors are also looking for bargains in the biotech sector, which was largely left out of the recent rally. There's some buying interest for defense stocks as geopolitical tensions heat up. But is that causing investors to begin showing some love towards this year's worst performers, energy?>> Not so much, because the ones I spoke with said that US crude production is going to increase.
We're gonna see it increasing later this year. So even if oil prices come up, they're gonna come right back down.>> As for the broader market, many portfolio managers fear the market is already too rich. So they don't see another widespread stock market rally, unless Trump can do the unexpected, like he did in November, this time with tax cuts.