On Tuesday, the European and American stock markets experienced a significant decline, with the US stock market ending its previous upward trend, all three major indexes falling together, and major European stock indices falling across the board. At the same time, the US dollar and US bond yields rose sharply, putting pressure on non-US currencies, and most commodities fell. As a result of this market situation, the previously hot 'Trump trade' cooled off temporarily in the past week.

What is the 'Trump trade'?

As a hot speculative theme in the current market, the 'Trump trade' is actually a collective term for market reactions based on the expected changes in government policies after Trump was elected President of the United States. This trading strategy involves not only buying and selling decisions across various asset classes, but also more deeply reflects investors' judgments and layouts on the economic and market impacts that Trump's policies may bring.

The core of the 'Trump trade'

The 'Trump trade' has dominated the market trends in the past few weeks, and in the coming period, expectations for Trump's policies will continue to be the main driver of market volatility. Specifically, the 'Trump trade' covers several core aspects:

1. Stock Market: The market generally expects that Trump's presidency will involve implementing policies such as tax cuts and loosening financial regulations, which are usually seen as bullish for the stock market, especially for industries that may directly benefit from policy changes, such as finance, traditional energy, and industry.

2. US Dollar and US Bond Yields: The 'Trump trade' is typically associated with a stronger US dollar and rising US bond yields. Market expectations for Trump's policies, such as tax cuts and increased infrastructure spending, could raise inflation and economic growth, thereby pushing up bond yields and attracting foreign investment, thus supporting the US dollar.

Cryptos: Trump's friendly attitude towards Bitcoin will create a favorable investment environment, providing a clear path characterized by relaxed regulations and business-friendly policies. It is expected that these policies will further boost the market.

Gold: Trump's trade dealings typically exert pressure on gold prices, as a stronger dollar and rising interest rates usually diminish its attractiveness.Its price has soared to a historic high, closely related to market expectations of interest rate cuts by the Federal Reserve.Attraction.

Trade policy: The Trump administration's trade protectionism policies, such as raising tariffs and trade barriers, may impact global trade and specific industries. Companies with high export dependencies may face challenges.

CSI Commodity Equity Index: There are differing opinions on the impact of Trump's trade on commodity markets. For example, Trump's support for the energy industry may boost oil prices, while his attitude towards global trade may affect the prices of industrial metals like copper.

"Trump Trade" demonstrates how policies affect the market, thereby stimulating investment opportunities. It is important to note that "Trump Trade" is not constant; it will evolve with the implementation of Trump's policies, changes in market sentiment, and the evolution of the global economic environment.