Why the Trump Trade Will Surge Again

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Why the Trump Trade Will Surge Again

(New York)

The Trump Trade is dead, long live the Trump Trade, says Bloomberg, commenting on Citigroup's argument that despite the initial Trump Trade being dead, it is about to come back in a big way. Inflation has slumped, and tax cuts look distant, which has made the Trump Trade lose its grip on markets, but that is exactly why the risk-reward for the trade now looks favorable, says Citi. "Citi economists have not changed their base case, still expecting fiscal stimulus and tax cuts or reform later this year", says the bank.

FINSUM : If Trump's policies do grab hold of markets again, it does make sense that now would be a good time to get in. The issue with this plan, though, is that prices have not fallen, so it is not as if you are getting Trump shares at much of a discount.

  • stocks
  • trump trade
  • valuations
  • inflation

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This article appears in: Investing , stocks

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