Why the Trump trade might be flawed

P olitical risk—the notion that an election might have a meaningful impact on financial markets—used to be something that was the concern of emerging-market investors. Those in rich countries paid attention to central bankers, rather than politicians. Things are a little different today. In the run-up to America’s presidential election on November 5th, asset prices have moved alongside polling averages. Wall Street hums with talk of the “Trump trade”.

The territory sits on an astounding number of critical minerals

A tax windfall has added to already overflowing coffers

The ultra-gloomy picture painted by politicians is no longer accurate

The country’s economy is broken. A recovery requires a healthier property market

Governments across the rich world are looking for alternatives

Treasury yields are rising ominously

https://www.economist.com/finance-and-economics/2024/11/03/why-the-trump-trade-might-be-flawed

A source: www.economist.com/finance-and-economics/2024/11/03/why-the-trump-trade-might-be-flawed