Trump Trade Resurfaces as Markets Price In Potential Second Term

Donald Trump`s chances of winning a second presidential term have increased due to a series of events this summer, including doubts about Biden`s capabilities and Trump`s own strategic moves like choosing a younger running mate and appealing to centrist voters. This has led to a resurgence of the "Trump trade" in financial markets, with investors anticipating the potential impact of his policies on various assets. Trump`s recent statements, such as retaining Jerome Powell as Fed Chair and considering Jamie Dimon for Treasury Secretary, aim to reassure investors about economic stability. Betting markets now favor a Trump victory, potentially leading to a Republican-controlled government and further influencing investor decisions, particularly a shift towards smaller companies expected to benefit from potential tax cuts.