President Donald Trump may have just demonstrated a harsh reality of Wall Street. When it comes to the trading discipline, the commonly discussed concepts of bullishness and bearishness mean very little. Instead, market participants should think in terms of deals — there are good deals and there are bad deals, with few in-betweens.
Exhibit A comes courtesy of the Trump administration’s aggressive trade war policies and subsequent U-turn. While the renegade moves certainly keep world leaders on their toes, that may not necessarily be a virtue. After all, business relationships thrive on trust and at least a semblance of predictability. The threat, then, is that key economic partners will grow tired of the shenanigans and thus pivot away.
