Why the 'Trump Put' For Investors Might Be Found in Treasuries, Not the Stock Market
Investors eager for President Trump's return to his first-term playbook of tweeting about the stock market may be waiting for a while, as tariffs have already hit equity prices hard in recent weeks. A growing number of Wall Street strategists point to Trump's likely first order of business: lowering bond yields, even if it comes at the expense of a falling S&P 500 (^GSPC). On Thursday, the broad-based index slipped, with year-to-date losses hovering near 1.5%.
- The notion that the "Trump put" is for Treasuries rather than stocks underscores the complexities of interpreting Trump's market views and the evolving dynamics between fiscal and monetary policy.
- How will policymakers address the paradoxical situation where lower bond yields might be seen as a sign of success, while rising stock prices are viewed with skepticism?