CoinVoice has recently learned from Jinshi Data that some investors in asset classes are gradually reducing their enthusiasm for the 'Trump trade' as they question whether Trump will push his ambitious tariff proposals after becoming U.S. president. As of Thursday's close, the dollar has erased much of its post-election gains, and U.S. Treasury yields have returned to recent ranges after two days of wild fluctuations. These moves suggest that as investors weigh whether Trump's policies align with his campaign promises, the market may experience volatility. As market turbulence settles, the focus is shifting to other significant events.
Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore, stated, 'Now, even the most fervent 'Trump trade' investors are stepping back and thinking whether the stakes are too high at this point. Traders are considering the execution and how some of his policies will effectively spread.' A key question for investors is how much of Trump's tariff measures will materialize. Some are also taking profits, including trades that are bullish on the dollar and bearish on government bonds, which performed well earlier this week due to expectations that Trump's policies would stimulate inflation and keep interest rates high.
Alvin Tan, head of currency strategy for Asia at Royal Bank of Canada, stated, 'People are skeptical about whether Trump will really implement the policies he proposed, especially the tariff policies; however, this sentiment may be temporary, as the market underestimates Trump's influence on trade policy — the U.S. president has broad powers to impose import tariffs.' [Original link]