In the latest LPL Market Signals podcast, Chief Equity Strategist, Jeffrey Buchbinder, and Chief Economist, Dr. Jeffrey Roach, discuss the significant rotation from technology to small caps recently, assess the potential effects of a Trump-Harris matchup on the “Trump trade”, analyze the election through an economic lens, and preview some important economic data due out this week.

The recent rotation away from technology into small caps and other areas of the stock market has been powerful. The strategists put the move in context and discuss some of its causes.

Next, the strategists discuss several popular “Trump trades” that have gotten a boost from the former President’s recent rise in the polls. These trades may lose some appeal on a potential closer election outcome, though Trump remains the favorite.

The strategists then review some historical economic relationships between the economy and election outcomes. Though Trump is the favorite, these studies suggest not to completely count the Democrats out just yet.

Last, the strategists look ahead to a busy week of key economic data and earnings, including second quarter GDP, the core PCE deflator (the Fed’s preferred inflation measure), and more than 130 S&P 500 companies reporting second quarter earnings.