In recent times, there has been a noticeable weakening of investments known as “Trump trades,” which have enjoyed increasing popularity following Donald Trump’s win. This primarily affects the US dollar and cryptocurrencies, which after initial strong growth, are now losing momentum. A similar downward trend can be noticed in the listings of some companies associated with Trump’s politics, such as private prisons Geo Group or Trump Media & Technology Group. Furthermore, the S&P 500 index has not reached a new peak in three weeks, causing some investors to worry about the condition of the US stock market.
The situation looks completely different on Chinese and European markets. The Hang Seng index in Hong Kong has gained nearly 13% since the beginning of the year, and the Euro Stoxx 50 has broken a historical record for the first time in 25 years. Chinese tech companies stand out notably: Alibaba Group’s listings have increased by over 45%. This is due, among others, to the innovations presented by these companies. The display of artificial intelligence DeepSeek has positively influenced investors’ attitudes towards the Chinese new technology sector, and the implementation of the “God’s Eye” system in BYD Co.’s electric cars further strengthened faith in the potential of Chinese manufacturers.
On the American market, one of the main concerns is the uncertainty about the further actions of President Trump’s administration. The lack of clear decisions regarding tariffs and the possibility of lowering the profitability of treasury bonds may further weaken the dollar in the future. As a result, investors are exercising more caution in making decisions, while also observing the political and economic developments in the US.
However, most analysts downplay fears of a quick end to the Wall Street bull run. According to them, the current fluctuations are a typical example of the “buy the rumor, sell the fact” strategy. The fundamentals of the US economy remain strong, and its growth rate still exceeds the dynamics of the Eurozone. Therefore, experts unanimously emphasize that the prospect of a sustained bull market in the United States is not seriously threatened.
Krzysztof Kamiński – Oanda TMS
Disclaimer: The information contained in this publication is for informational purposes only. It does not constitute financial or any other advice, is general in nature, and is not intended for a specific recipient. Before using the information for any purpose, independent advice should be sought.
Source: https://ceo.com.pl/slabnace-trump-trades-dolar-i-kryptowaluty-traca-impet-69094
