President Trump's New Tariffs on 60 Countries Just Took Effect, and the "Trump Trade" Index Is Down 16%. Should Investors Worry?
The Trump Trade strategy has stopped paying off. Will it recover?
Overview
We all know that President Trump's policies have had an outsize impact on American life. Perhaps more than any president before him, Trump has also had an impact on the stock market. From his eponymous Trump Media & Technology Group (NASDAQ: DJT) to the "Liberation Day" market aftermath in April 2025, there's no denying that Trump has been able to move the performance of specific stocks and entire markets.
Naturally, savvy traders want to cash in on these market effects. Enter the so-called "Trump Trade," in which investors bought stocks and ETFs that stood to benefit from Trump's stated policies of cutting housing regulations, upping defense spending, and reshoring manufacturing to the U.S.
Details
One of those traders was Ned Davis Research, which assembled a basket of Trump Trade exchange-traded funds (ETFs) it dubbed the "Trump Trade Index." Unfortunately for Ned Davis and other Trump Trade investors, things haven't gone according to plan this year. Here's why not, and whether investors should worry.
Source
Originally published at www.fool.com.