According to TechFlow news on November 8, as reported by Jin10 Data, some investors in various asset classes are gradually reducing their enthusiasm for the 'Trump trade' as they question whether Trump will push forward with his ambitious tariff proposals after becoming president. As of Thursday's close, the dollar has erased most of its post-election gains, and after two days of sharp volatility, U.S. Treasury yields have also returned to recent ranges. These moves indicate that as investors weigh whether Trump's policies align with his campaign promises, market volatility may occur. As market turbulence settles, 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 at this point, are the stakes too high? Traders are considering the execution and how some of his policies could effectively translate."
A key question in investors' minds is how much of Trump's tariff measures will become a reality. Some are also taking profits, including bullish dollar and bearish Treasury trades, which performed well earlier this week due to expectations that Trump's policies would spur inflation and keep interest rates high.
Alvin Tan, head of Asia FX strategy at Royal Bank of Canada, stated, "People are skeptical about whether Trump will actually 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."