You can almost feel it now. After months of market speculation about who would become the next US president and what that would mean for markets, we’re coming back to the present. Don’t get me wrong, the so-called Trump Trade still dominates headlines and causes gyrations in stocks, bonds, Bitcoin, and the US dollar. But the price action will get more muted.
Take Wednesday, for example, when Tesla shares didn’t really move, even after Elon Musk was announced as a “Department of Government Efficiency” guru for Trump. Stocks were little changed. Yes, Bitcoin was still on a tear — but we’ll get to that later. The big theme was the rally in Treasury bonds on relief that the inflation numbers — while elevated — didn’t deliver any negative surprises.