When Will The Trump Bump Peak?

2024-12-30 10:10:29

(MENAFN- Baystreet) When Trump won the U.S. presidential elections in November, the stock rally, known as the Trump bump, ensued. Tesla (TSLA) is the most-followed auto manufacturer whose stock price nearly doubled. TSLA stock rose from below $250 to as high as $488.54.

Cryptocurrencies like Ethereum (ETH-USD) and Bitcoin (BTC-USD) also rallied. Coinbase (COIN) enjoyed a stock price double, too. Conversely, cryptos like LIF3 traded lower. Looking ahead, Mara Holdings (MARA) risks giving back its gains. It traded at a“double top” at around $27, closing at $18.44 on Dec. 27. Riot Platforms (RIOT) peaked at $18.75 and closed below $11.00 last week.

The volatility suggests that traders should ask when may the Trump bump rally peak.

The stock bump risks losing momentum after the inauguration on Jan. 20. When Trump takes office, the party will introduce policies and legislation. That contrasts with the current policy threats that are not yet in place. For example, tariffs against Canada sent the Canadian dollar (FXC) down by nearly 2.5% in the last month.

Mexico's (EWW) stock market fared poorly too. iShares MSCI Mexico ETF (EWW) continued on a downtrend. In Europe, the Euro (FXE) dropped while Japan's Yen Trust ETF (FXY) also fell.
After pricing in the worst-case scenario, a relief rally in those ETFs is possible.

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