Trump 2.0
- Apr 2
- 2 min read
Markets rejoice: positive reaction to Trump's victory š Stock markets welcomed Donald Trump's victory, buoyed by optimism surrounding his economic agenda
Markets celebrating: positive reaction to Trump's victory š
Stock markets welcomed Donald Trump's victory , buoyed by optimism surrounding his economic agenda .
Cyclical stocks like those in the Russell 2000 have posted their best performances since 2021 .
The S&P 500 has crossed the symbolic 6,000-point mark , supported by forecasts of a significant increase in corporate profits .
This euphoria reflects a strengthened confidence on Wall Street in a pro-business economic environment .
Bitcoin is soaring š
The flagship cryptocurrency has surpassed $84,000 for the first time , driven by hopes of a more favorable regulatory framework under a Trump administration.
Bitcoin peaked at $ 84,360 .
Crypto-related stocks like MicroStrategy and Coinbase gained approximately +17% .
Options traders are anticipating a price of $100,000 , driven by growing institutional interest in crypto ETFs like BlackRock's iShares Bitcoin Trust .
Dollar rises following Trump's victory šµ
This upward momentum is fueled by expectations of an aggressive trade policy , likely to revive inflation and support the dollar .
The yen and the euro are weakening against the greenback.
The Federal Reserve recently lowered its rates , without signaling a clear path forward.
The dollar is rising thanks to solid US growth , while other major economic regions are experiencing a slowdown and more accommodative monetary policies.
What to make of this euphoria? š¤
At Evvest , we recognize the good fundamentals of the American economy , but remain vigilant against the potential return of inflation , especially if tariffs are raised.
Key points to remember:
The market could turn around , as it did in 2018 , in reaction to a tightening of trade policy.
Valuations are less attractive today, which limits the upside potential.
However, we continue to favour the United States over Europe, which appears more economically vulnerable .
Our strategy š§
Overweighting of the United States in portfolios.
Increased monitoring of US inflation this week.
Caution is advised regarding highly valued stocks , despite current enthusiasm.
Conclusion: Opportunity or excessive optimism? š§
Markets welcomed Trump's victory, but caution remains warranted. While US growth continues to surprise, a return of inflation or a tightening of protectionist measures could trigger a sharp reversal .
At Evvest , we remain positioned, but selective , in an environment where economic clarity still needs to be closely monitored .
