The 'Trump bump' has run its course, buy growth stocks now, Jefferies says

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Jefferies on Monday told investors of a set of investment ideas that don't rely so heavily on President Donald Trump's promises, but instead can stand on their own regardless of the policy direction the new administration takes.

"We think that the Trump bump has run its course and now investors should tack back to 'growthier' growth companies that may not need a better economy to post strong earnings growth," wrote equity strategist Steven DeSanctis, who specializes in small- and mid-cap stocks, in a note to clients.

Jefferies says investors have been "battered with Trump tweets" and the potential investment angles around what he may or may not do, bringing up valuations for those groups expected to emerge as winners.

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