“Trump Trade” refers to the pricing effect of Donald Trump's economic and political rhetoric on markets. The term first appeared after he won the 2016 presidential election. During that time, Trump's policies, such as tax cuts, infrastructure investments, deregulation (reducing rules and regulations), and foreign trade pressure, were reflected in some sectors sudden pricing reactions gave birth.

At the heart of the Trump Trade is that investors are pricing future economic expansion and company profitability up front. This leads to an orientation towards risky assets, a rise in interest rates, an increase in the value of the dollar and a fall in bond prices.

🧠 Why is this strategy still being talked about?

Because Trump, the markets can directly perceive clear and hard messages gives. These messages often create “impact”, not “uncertainty”. For example:

• When he said, “We will introduce new taxes on China” Asian stock markets have been shaken
• When you say “Bitcoin is a good thing” → Crypto market nears $1 trillion
• When he tweeted “The Fed is not serving me” → Dollar index and bond yields fall

So Trump Trade is still a valid concept because the market has its voice like a data works. Their statement is not only policy for investors, but also pricing argument becomes.

📊 What Are the Economic Basis of Trump Trade?

1. Tax Reforms: The policy of reducing corporate taxes, in particular, created the expectation of increasing the net profit of S&P 500 companies. This, in turn, moved stock prices directly up.
2. Infrastructure Expenditure: The promise of trillion-dollar infrastructure has positively impacted the industry and construction sector. Companies such as Caterpillar, US Steel stood out.
3. Deregulation: The expectation that rules will be loosened in the banking and energy sectors has added value to institutions such as JPMorgan, Goldman Sachs.
4. Trade Wars: The trade war launched against China, in particular, increased volatility in commodity markets. It also threatened the production chain of technology giants.
5. The “America First” Economy: Domestic production, customs protection, reduction of the foreign trade deficit were aimed. This has become a rhetoric that strengthens the US dollar.

📉 Affected Sectors and Assets

Positively Affected:

• 🏗️ Industry (Caterpillar, Honeywell)
• 🔫 Defense (Lockheed Martin, Raytheon)
• 🏦 Finance (JP Morgan, Citi, Bank of America)
• ⛽ Energy (ExxonMobil, Chevron)

Adverse Affected:

• 💻 Technology (Apple, Nvidia, AMD)
• 🌱 Clean Energy and ESG themed companies
• 📉 Currencies of developing countries (such as TRY, MXN)

🌎 How Global Capital Flow Has Been Affected

During the Trump era:

• US 10-year bond yields rise from 1.5% to 3%
• The dollar index (DXY) jumps from 90 to 102
• S&P 500 rises close to 30% in a short time

I mean, it's not just the US stock market, the distribution of the entire world portfolio has been reshaped. Investors turned to US-based assets under the theme of “Trump Trade”, money began to flow out of developing countries.

📌 What Is This Knowledge Useful Today?

If Trump is re-elected, or if someone who advocates similar policies takes office:

• Sales in the bond market
• The appreciation of the dollar
• Industry, energy, defense sectors to the forefront
• Prints on emerging market currencies can be expected.

But now investors are more aware. because Trump Trade is not just a piece of history, it is a set of signals.

📚 What Does The Trading Desk Offer At This Point?

The Investment Desk describes the statements of leading figures such as Trump as “daily news”, not strategic signals that influence investor decisions Analyzes as.

It's not just what he says; When, what sector, which investment vehicle, in what direction it can affect reviews.

That's why in globally impactful developments like the Trump Trade, the Investment Desk reader doesn't just understand what's going on, He also learns how to evaluate it.

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