Trump's coming to power is a positive in the short term, but it is more complicated in the long term.
Mainly, Trump's coming to power will affect the Fed's monetary decision-making, so relatively speaking, the Fed may be more hesitant to cut interest rates in the future. It is not even ruled out that the interest rate cut may be stopped, which may cause market concerns about the economy at that time.
If the Fed delays the interest rate cut, economic uncertainty will increase, and investors' risk aversion may rise.
The collapse of interest rate cut expectations will increase the possibility of recession and the risk of market correction.
Macro •
Stock market surges: Trump says he will further reduce corporate tax from the current 21% to 15% to increase corporate profitability
Bond market plummets: Inflation will rise due to tariffs and reduced immigration, and the Fed is more concerned about cutting interest rates, which is not good for the bond market; in addition, tax cuts will significantly increase the fiscal deficit, which is also not good for the bond market
Dollar appreciation: Tax cuts and tariffs will allow companies to return to the United States, and capital repatriation will lead to an appreciation of the dollar
Gold plummets: The appreciation of the dollar and the rise in interest rates caused by the sharp drop in the bond market are both not good for gold