🔴💥Trump's trade🔴💥
The Trump Trade is already underway. This is what it means for Trump to win, or the expectation that he will win:
#1Bullish for Crypto
Reason: The Trump administration could pursue supportive regulations for cryptocurrencies, encouraging innovation and adoption.
#2Steeper yield curve
Reason: Fiscal policies under Trump, including increased government spending and tax cuts, could lead to higher inflation expectations and rising long-term interest rates.
#3Bullish for oil and gas, steel and coal
Reason: Deregulation and policies that encourage domestic production of fossil fuels and industrial metals (tariffs).
#4Bullish for the financial sector
Reason: Deregulation of the financial sector could reduce compliance costs and increase the profitability of financial institutions. A steeper yield curve is also beneficial for financial institutions, which benefit from the larger spread between short-term lending rates and long-term lending rates.
#5Bullish for small caps
Reason: Tax cuts, deregulation, and support for domestic manufacturing tend to be more favorable to small caps.
#6Offshoring
Reason: Policies that encourage companies to reintroduce production in the US. Favorable for domestic manufacturing and companies making offshoring efforts.
#7Bearish for renewable energy
Reason: Less emphasis on environmental regulations and support for fossil fuels over renewable energies. Possible decrease in subsidies for renewable energies.
👉Translation made with the free version of the DeepL.com translator👈
🔴👉Source: Alex Krüger @krugermacro on Twitter 👍
