Trump Trade Resurfaces as Markets Price In Potential Second Term

Donald Trump has recently experienced a surge in momentum, increasing his chances of winning a second presidential term. This shift has financial markets reacting favorably to the possibility of another "Trump trade," impacting various sectors like stocks, bonds, and interest rates.

Several factors contribute to Trump`s improved standing, including doubts about Biden`s capabilities following the June debate and a show of Republican unity at their convention. Trump has also adopted a more moderate stance, aiming to attract a broader range of voters and reassure the business community. He has even hinted at maintaining current financial leadership and policies if re-elected.

Consequently, investors are displaying renewed confidence in a potential Trump victory, as reflected in betting markets and a shift towards investments that could benefit from Republican-led policies, such as corporate tax cuts.