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The Trump Trade 2.0: Investors Positioning for a Pro-Business Presidency

Equity Markets Soar on Reinflation and Pro-Growth Policies

The equity markets, particularly the Russell 2000, are experiencing a massive rally, reminiscent of the post-election surge in 2016. This "reinflation, pro-growth, low taxes, low regulation" trade is driving the markets higher, with the Dow Jones Industrial Average up over 1,400 points.

Bond Yields Spike as Investors Price in Inflation

The bond market is also reflecting the reinflation trade, with yields jumping across the board. This is indicative of investors pricing in higher inflation expectations under a Trump presidency.

Dollar Strengthens Amid Higher Yields

The US dollar has also seen significant strength, keeping pace with the rise in Treasury yields. This is a classic response to the prospect of higher interest rates and a more pro-business, inflationary environment.

Bitcoin Surges Past $75,000

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