- Trump's policies may trigger inflation, affecting both stocks and bonds negatively.
- Investors worry about inflation due to Trump's proposals on tariffs, taxes, and mass deportations.
- Rising bond yields and potential deficit spending could further strain the market.
Wall Street embraced Donald Trump's election win in November, catapulting the stock market to record highs on the prospect of a business-friendly agenda and strong economic growth.
But fast-forward just a couple of months, and reality is starting to set in among investors that Trump's policy proposals of universal tariffs, lower taxes, and mass deportations could spark a rebound in inflation and set off a market scenario reminiscent of 2022, when stock and bond prices fell in tandem.
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