Forget The Stock Market's Tariff Turmoil. Trump's Next 100 Days Could Bring A Bullish Trifecta That Reignites Demand, Expert Says

5 hours ago 3

Piero Cingari

Sat, May 3, 2025, 6:33 PM 3 min read

A historical divergence is unfolding crossed plus classes, with golden surging to its champion presidential-term commencement since Gerald Ford portion U.S. stocks station their worst show since the aforesaid era, and Bank of America's main strategist Michael Hartnett says investors are progressively betting connected argumentation shifts to rescue the marketplace from brushed macroeconomic headwinds.

In a enactment shared Friday, Hartnett outlined however the "second 100 days" of Donald Trump's 2025 presidency could bring a pivot toward little tariffs, little rates and little taxes — a bullish trifecta for hazard assets.

That shift, helium said, could revive appetite for equities, adjacent arsenic recession signals persist successful the economical data.

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Just a week ago, Hartnett said a sustainable bull marketplace would request 3 things: little Treasury yields nether 4%, accordant net maturation supra 5%, and a meaningful U.S.-China tariff rollback. His strategy remained: "Stay BIG, merchantability rips" — favoring bonds, planetary stocks and golden portion fading rallies successful U.S. equities.

Gold is the standout performer twelvemonth to date, up 22%, marking its champion opening 100 days since the Ford administration.

In contrast, the S&P 500 is down 0.3%, its worst kickoff since the 1970s, portion the U.S. dollar has tumbled 7.6%, logging its steepest descent since the Nixon era.

Notably, golden – arsenic tracked by the SPDR Gold Trust (NYSE:GLD) – logged its 5th consecutive period of outperformance versus stocks successful April, notching some the longest streak since 2009 and the strongest since 2011.

Hartnett attributed the archetypal marketplace moves to headline-grabbing developments similar artificial quality excitement, crypto speculation, NATO tensions and "Liberation Day" trades.

Yet, these trades are present "unwinding significantly," helium said, arsenic attraction shifts to imaginable Trump-era economical policies successful the pipeline.

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Treasury yields are reflecting expectations of easier monetary policy. The 2-year Treasury output has fallen 70 ground points since Trump’s Inauguration Day, lipid is down 20%, and the U.S. dollar is weakening.