The “Trump Trade” refers to the behavior of global financial markets and investor actions in response to Donald Trump’s economic policies and political moves. It is fair to say that since the election of Donald Trump, markets have moved substantially.
Here are some key market impacts:
- Stock Market: Mr Trump’s policies, such as deregulation, tax cuts, and increased fiscal spending, have historically led to a surge in U.S. shares, especially in sectors like technology, financials, industrials, and energy companies. Investors expect these policies to make a comeback, boosting market confidence.
- Currency Markets: The U.S. dollar tends to strengthen under Mr Trump’s policies, as this is seen to influence increased economic growth and higher interest rates.

- Bonds: Treasury yields rise as investors anticipate higher inflation and economic growth, leading to higher interest rates.
- Commodities: Commodities like precious metals (gold, silver, platinum, palladium) may see fluctuations based on investor sentiment and economic policies.
- Global Markets: International markets react to Mr Trump’s policies, with potential significant impacts on trade relationships and economic growth.
Overall, the Trump Trade reflects a pro-business climate that can influence various financial markets. Some influences will be beneficial whilst others less so. Understanding the influence can determine investment outcomes.
This information is intended as a guide only and professional advice should be sought for individual circumstances.