🇺🇸 Stocks hit all-time highs

What’s going on here?

The dust is settling on the US election, and Wall Street looks to be gearing up for what could be a big year-end rally.

What does this mean?

In the world’s biggest financial market, there are heftier factors at play than red versus blue: strong corporate earnings, lower interest rates, and the unstoppable force of AI. Analysts have been treating the election results like a “clearing event” – a force that wipes uncertainty and lets investors get back to business. Volatility’s been on an upswing in recent days, but it’s expected to fall as investors turn their focus away from the White House and back to the Federal Reserve: the central bank’s expected to cut interest rates again this week.

Why should I care?

For markets: Red-letter day.

In essence, markets woke up Wednesday ready to rally no matter who ended up in the White House. Stocks, bitcoin, the greenback, and bond yields all saw big jumps, as investors bet on the president-elect’s talk about tax cuts and deregulation. But some of those trades might not last. While there may be short-term gains to be made, folks could start selling soon to lock in profits – especially with rising bond yields hinting that inflation could be a concern again.

The big picture: Playing the long game.

Election years are like a soap opera – plenty of drama – but markets mostly brush that stuff off. History shows that US stocks find their groove no matter who’s sitting in the Oval. So here’s the thing: by diversifying across sectors, asset classes, and geographies, you can soften the impact of political swings. Sure, it might be tempting to adjust your strategy based on campaign promises, but those don’t usually shape markets over time. A balanced long-term approach is often savvier. Ultimately, broader economic trends – not voting booth wins or losses – drive investments.

What’s going on here?

Novo Nordisk has been racing ahead of its competition, fueled by booming sales of its obesity and diabetes drugs.

What does this mean?

Denmark’s Novo Nordisk – the biggest company in Europe – is behind the blockbuster treatments Wegovy and Ozempic. And in the third quarter alone, the firm pulled in $10 billion in sales, driven largely by the huge appetite for its weight loss drugs. With those meds being prescribed to more patients than ever before, profits rose to almost $4 billion – which neatly fit with expectations. Wegovy's revenue alone climbed 79% compared to the same time last year – to $2.5 billion, even as its price dropped in the US. And though investors might be alarmed by the fact that the drugmaker’s shares are 25% slimmer than they were in June, the latest look into Novo’s books should soothe their nerves.

Why should I care?

Zooming in: Feeding frenzies.

The hugely popular glucagon-like peptide-1 (GLP-1) weight-loss and diabetes wonder drugs are already a $50-billion-a-year market, and that’s expected to more than triple in the next six years. And the potential feast is already attracting loads of pharma companies who want a piece of the action. But they’ll have a long way to go to catch up to Novo and US giant Eli Lilly. Novo’s got a shiny new treatment that could potentially help patients drop a best-in-class 25% of their weight.

The bigger picture: Golden oldies.

Lower birth rates and longer life expectancies can only mean one thing: aging populations. That’s the reality across the world’s wealthiest economies. Japan – whose population is, on average, older than the rest – is already allocating more and more public money to healthcare. And as that trend spreads like a contagion across Europe and North America, it’s likely to give medicine and healthcare stocks a shot in the arm.