Investor enthusiasm for so-called Trump Trades is cooling as doubts arise over the feasibility of former President Donald Trump's ambitious tariff proposals. The dollar and Treasury yields have stabilized after two-day volatility, and the dollar has reversed much of its post-election surge. Investor optimism around Trump Trades is cooling as doubts emerge over whether his policies will align with campaign promises. Attention is shifting to other key factors, including the Federal Reserve’s easing measures and China’s anticipated fiscal stimulus.
