Tariffs, TACOs, and dollars

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One Essential Read

Recommended by Kate Turton, Newsletter Editor

Since Trump election global markets have had to navigate policy shocks

After US President Donald Trump defeated Democratic rival Kamala Harris on November 5, 2024, the dollar roared higher, along with stocks and bitcoin, while Treasury yields rose, as investors priced in the likelihood of greater strain on US finances.

Since then his administration has struck deals on trade, while upending global supply chains and decades of post-war international diplomacy.

Investors are learning to ride out the unpredictability, including finding ways to trade Trump's tendency to amp up threats only to later back down. The so-called TACO trade - "Trump always chickens out" - has become a feature.

Here is a snapshot of where major markets are now, compared to when Trump was elected.

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