Money managers believe infrastructure spending will be one of Donald Trump's first achievements in office, and buying the S&P 500 was the most popular trade the day after the election.
That's according to Bank of America Merrill Lynch's survey of 114 global fund managers on Wednesday, less than 24 hours after the Trump election upset. Markets had largely been viewed as positioned for a Hillary Clinton victory, and some top Wall Street strategists had expected stocks to sell off by several percentage points if the real estate mogul won.
But in a massive recovery from a roughly 5 percent election night plunge in stock index futures after Trump won, U.S. stocks surged Wednesday in the highest trade volume day since Brexit in June with financials and health care leading.
Thirty percent of survey respondents said they bought the S&P 500, making it their top postelection market action. Other popular trades were selling risky assets, buying gold and buying the U.S. dollar, according to the survey, which was published Thursday.