Trump 2.0 Sweeps the Globe! How Will It Impact the Financial Markets? Understand the Trends of Various Assets in One Article

On January 20th, Eastern Time in the United States, Trump stood on the oath-taking platform of the Capitol Building in Washington again as the 47th President of the United States and then delivered an inaugural speech.

 

 

Specifically, the current policies signed by Trump have the following core points:

 

In terms of trade, Trump said that he will establish an "External Revenue Service" to be responsible for collecting new tariffs on imported goods.

 

During his campaign, Trump made combating illegal immigration the core of his campaign.

 

On his first day in office, Trump implemented this policy, declaring a national emergency on the southern border, dispatching troops to resist the so-called "catastrophic invasion" of illegal immigrants, and terminating the birthright citizenship of children born to illegal immigrant parents.

 

In his speech, Trump focused on solving the inflation problem. He said that he will instruct all cabinet members to use the power at their disposal to combat record-high inflation and quickly reduce costs and prices, including increasing the exploitation of traditional energy sources, revoking preferential policies for electric vehicles, and ending the "Green New Deal", among others.

 

Trump's attitude towards the short-video social media platform TikTok has attracted much attention before and after he took office. On the evening of the 18th, TikTok suspended its services for US users.

 

It was not until the day Trump took office that an executive order was signed to postpone the effective date of the "sell or ban" ban on TikTok by 75 days.

 

 

Since November 2024, the US dollar and US bond yields have once returned to their highest levels in nearly two years. The US stock market has risen with volatility, while overseas bonds have generally fallen.

 

So, how will various assets perform in response to the above new policies?

 

Under the favorable situation of Trump's "slowing down of tariff collection", the US dollar index has fallen from its high level, while non-US dollar currencies have generally strengthened.

 

Therefore, whether the strong dollar can continue in the future will largely depend on the actual implementation of Trump 2.0 policies.

 

 

After Trump's election in November last year, the three major US stock indexes rose all the way and have been adjusted since 2025.

 

In the short term, the US economic data is strong, the AI technology wave is still continuing, and coupled with the benefits of interest rate cuts and Trump trades, there is still room for growth.

 

But at the same time, we need to pay attention to the disturbances brought by the uncertainty of Trump's policies to the market.

 

 

In the past two months, the overall long-term interest rate in the United States has risen, mainly affected by the cooling of short-term interest rate cut expectations and strong employment data.

 

At present, the 10-year US bond yield has fallen back to around 4.5%. Based on factors such as the overall decline in inflation and clear expectations of interest rate cuts, the winning rate of US bonds is not low in the medium term.

 

On January 18th, Trump posted on his social account, announcing the launch of his personal Meme coin, $TRUMP . Once the Trump coin was launched, it witnessed a soaring market.

 

Trump has also said that he plans to make the United States the "cryptocurrency capital of the world".

 

I have no doubt about his determination. The cryptocurrency market has already digested some positive factors in advance, but if there are more powerful policies in the future, it is bound to continue to rise.