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ANALYST: Here's the biggest lesson from the election of Trump

Nov 18, 2016, 22:21 IST

Donald Trump as he announces his run for presidentChristopher Gregory/Getty Images

Since President-elect Donald Trump's stunning victory last week, political analysts, economists, and members of both parties have been searching for the deeper meaning behind the outcome for clues about the future.

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According to Greg Valliere, the chief global strategist and longtime political analyst at Horizon Investments, it isn't particularly hard to glean the largest lesson from the election: don't short Trump.

"There were many lessons from this election that won't soon be forgotten," Valliere wrote in an analysis. "Perhaps the biggest: Do not bet against Donald Trump. His supporters are fanatically loyal, and he now has virtually unchecked power."

For the Democrats, he said, the loss seems to have stemmed from the weaknesses of Hillary Clinton.

"The lesson for Hillary Clinton is that she failed to appeal to workers in a year in which the stars were not in alignment for her: Voters didn't like establishment candidates, they don't like globalization, and they hate Wall Street," Valliere wrote. "Clinton seemingly embraced all three of these unpopular characteristics, and she paid the price."

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Outside of politics, Valliere said there were a few implications from the election for investors - both good and bad. The good included deregulation, tax reform, increased fiscal spending, and particular benefits for sectors such as energy and defense contractors. On the bad side, the possibility of a trade war now looms, as well as a Trump attempt to "curb the Federal Reserve's power."

Valliere ultimately called Trump a "pragmatist," citing the selection of Republican National Committee Chair Reince Priebus as his chief of staff.

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