The death of the Trump trade
Financial Times
February 25, 2026
AI-Generated Deep Dive Summary
The article discusses the decline of the "Trump trade," a market strategy that bet on U.S. President Donald Trump's policies, including tax cuts and deregulation. Investors are now pulling out due to growing backlash against these policies, leading to a selloff in U.S. markets. This shift is driven by concerns over geopolitical tensions and economic uncertainty.
The "Trump trade" involved strategies like shorting the yen, betting on sectors benefiting from tax cuts and tariffs. Initially, this led to corporate buybacks and M&A activity. However, the tide turned in 2018-19 as financials underperformed, while tech and growth stocks surged, reflecting a shift towards safer investments amid global tensions.
This reversal highlights changing market dynamics. Investors are now prioritizing companies with strong balance sheets over those dependent on economic stimulus. The article underscores how political cycles influence markets and the importance of adapting to evolving investor sentiment.
Understanding these shifts is crucial for investors and businesses. It reveals the impact of policy uncertainty and geopolitical risks on market trends, offering insights into future investment strategies in a volatile
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Originally published on Financial Times on 2/25/2026