The markets are reacting forcefully to Donald Trump's victory in the U.S. presidential election.

U.S. stocks, bond yields, and the U.S. dollar are all rising sharply in Wednesday trading.

But will these moves have legs and what medium and longer term market implications could this election outcome have?

I'm Allison Nathan and this is Goldman Sachs exchanges.

Today I'm sitting down with Christian Mueller-Glissman, head of asset allocation research in

Goldman-Sacks research, and Brian Garrett, who oversees equity execution on our cross-asset

sales desk in Goldman Sachs Global Banking and Markets.

Christian, Brian, welcome to the program.

Thank you very much.

Glad to be here.

Yes, and Brian, you've been up since the wee hours of the morning.

Christian, you are in London, so you had the benefit of the time change, but we've all been up

a lot overnight watching these markets, which, as I've just said,

are reacting quite strongly to Donald Trump's victory. We've seen these so-called Trump trades

that we've been talking about for a long time now, really taking off. So, Brian, talk us through

the flows that you are seeing today and how much further you think these trades can run

because they've already run quite a lot. I think coming into today, clients were underweight

risk on where they wanted to be, especially in the event of the Trump potential red sweep.

If we were to handicap it, clients were probably running at a five out of ten in terms of positioning.

We've seen clients engage on trades that worked following the 2016 election, which were long banks,

long technology, long energy stocks. And if you look at 2016 as a playbook, the market rallied

2% the day after the election. And between mid-November and mid-December in 2016, we rallied another 3.5% which given where S&P is right now would put us right around 6,100.

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