Trading in the New Trump Effect Era: Actions Speak Louder Than Words

Look More Closely at What Trump Does than What He Says (Actions Speak Louder than Words)

This article is In reply to a post in the Global-View Forex Forum today.

Donald better be careful (or someone needs to supervise him) with his bravado – “will do this , will do that, 25% tariff on day 1” – and NOT delivering on it. Market is bigger than someone’s bluster and if the vigilantes decide they had nuff there ll be good sized price to pay coz showing weakness like Donald is doing now with his tariff topsy-tipsy-curvy is playing with credibility.

lose credibility and … the game changes

Anyone who has followed Trump, both as president and as a candidate should be aware that he is never at a loss for words. Sometimes those words translate into policy and other times they are simply a stream of consciousness speaking.

It isn’t his fault that traders react to his statements that are taken literally or news services in competition for the next market moving headline.

Look at the market moves to start the week and it is only Day Two of the new Trump era.

On Day One the reaction was to a news report that Trump planned to take a go slow approach to levying tariffs. By the end of that day the report was contradicted by Trump himself threatening to levy 25% tariffs on Mexico and Canada.

The moral is that life in Trump World should be viewed as actions speak louder than words.

As we should all know by now there will never be a shortage of words to create headlines and volatility but in the end actions are what counts.

In this regard the threat of tariffs are words that put a cloud over markets but what the actual policy eventually turna out to be is what will matter in the end.

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