After A Historic Week For Markets, Goldman's Trading Desk Looks At What's Next

It was a week for the history books: not only did Trump and the Republicans steamroll Kamala and the democrats in a historic drubbing after an election that was supposed to be the "closest on record", but markets went off the charts; here are some of the amazing states of the past week: Russell +8.6%, Nasdaq +5.4%, S&P +4.6% (closed @ 5995).

Not surprisingly, after this staggering buying spree, Goldman trader Mike Washington writes that there is a "bit of investor fatigue out there" as the dust continues to settle post-Election, Fed & BOE 25bp rate cuts, a round-trip in yields (US 10YR yield -7bps on week to 4.30%), and a long tail of earnings.

Still, the Goldman trader is quite optimistic and predicts that rotational pressure will remain a prominent feature for markets as investors put $ to work down the market-cap spectrum and look for cyclical / reflation themes. Meanwhile, as Scott Rubner said, flow of funds remain positive and so does everything else: