The “Trump trade” has significantly impacted global markets since Donald Trump’s election win. His policies, including tariffs, tax cuts, and deregulation, have driven significant market movements. However, experts question how long this trend can last.
US stocks, the dollar, and Bitcoin saw rapid price increases following his election, changing investors’ outlooks. The “Trump trade” is expected to continue, but its sustainability is uncertain. Market valuations are high compared to historical levels, increasing concerns about future returns. Protectionist policies also pose a risk of fueling inflation.
Additionally, the US economy faces challenges, including a growing fiscal deficit and a softer labor market, which could impact growth prospects. Historically, key investments like small companies and the US dollar have not proven resilient in Trump’s first term. It is unclear whether markets will continue to support the “Trump trade” for an extended period.
Source: https://www.bloomberg.com/news/articles/2024-11-14/trump-trade-how-is-his-election-moving-markets-how-long-can-it-last