The Trump-Biden stock market rally, decoded

Given the mix of optimism for economic growth due to infrastructure spending and anticipated deregulation, it is probable that sectors benefiting from these policies will see positive movement. Financial services, energy, and construction stocks might perform particularly well. Investors should look closely at firms positioned to capitalize on the increased cash flows and infrastructure investments predicted during this period.

The potential for regulatory changes could favor sectors that thrive under a more business-friendly environment. Thus, ETFs focused on financials and industrials may benefit as the Trump administration potentially implements deregulation, further boosting market sentiment. Investors could consider positions in financial ETFs or industrial-focused ETFs to take advantage of this forecasted growth.

Despite the bullish sentiment, there are risks associated with Trump's proposed policies (like tariffs) which could potentially disrupt supply chains and reintroduce inflationary pressures. Hence, while the immediate market sentiment may be positive, caution is advised, and investors should be aware of the potential volatility and sector-specific risks.