Following the attempted assassination of Donald Trump, global financial markets have shown a significant shift towards the “Trump trade” – a series of investment strategies based on the anticipation of Trump’s potential return to the White House. These trades, which had already been gaining traction due to Biden’s recent debate performance, intensified as Trump’s resilience in the face of the attack galvanized supporters. The market reaction includes a steepening yield curve in Treasuries, a strengthening dollar, a weakening Mexican peso, and a surge in Bitcoin. Investors are positioning for potential tax cuts, higher tariffs, and looser regulations under a Trump presidency. However, with four months until the election and concerns about political instability, the situation remains fluid and subject to change.
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