Like Ray Charles, Donald Trump is a master of call-and-response. He sends the signal—and markets waste no time answering. And with each exchange, new opportunities start to take shape.
Legend has it that “What’d I Say” was born on a whim. Out of songs at the end of a 1958 concert in Brownsville, Ray Charles turned to his band and backup singers and said: “I’m going to improvise—follow me.” What followed was a timeless R&B classic built on raw, electrifying back-and-forth.
In a very different register, another master of the genre has just returned to center stage. Donald Trump is back in the White House, promising to shake things up once again. As global powers try to align and financial markets begin to sway, “What’d I Say” seemed like the perfect soundtrack for this month’s column.
Since November 5, all eyes have been on Trump—and markets haven’t missed a beat. Every time the president-elect reveals a new key appointment, markets jump into action. That eagerness may contain more than just enthusiasm—it could be where the next opportunities lie.
Let’s look at the first responses.
Leading the chorus is the U.S. equity market. Since early November, the S&P 500 has risen steadily, buoyed by a fresh wave of optimism. The melody feels familiar: in 2016, markets also rallied after Trump’s win. But this time, there are some new variations. While deregulation and tax cuts remain on the score sheet, new themes are being added—giving a boost to sectors like energy and banking.
Meanwhile, investors have turned a deaf ear to most European and Asian indices, many of which look set to end the month in the red.
Another loud response has come from the digital asset space. The inclusion of several pro-crypto figures—Elon Musk, Scott Bessent, Paul Atkins—suggests a friendlier regulatory environment ahead. Bitcoin has seized the moment, surging toward the symbolic $100,000 mark.
But not all markets are dancing in sync. Despite the early enthusiasm surrounding Trump’s presidency—backed by a business-heavy cabinet and a Senate majority—the bond market remains cautious. Investors are now weighing whether the administration’s policies will stoke inflation or cool it down.
And this matters—a lot. With U.S. public debt exceeding $35 trillion and borrowing costs already sky-high, bond market confidence is critical. Just ask Liz Truss, whose plans were rejected outright by U.K. markets in 2022. Or look at France, which this month saw its borrowing rate creep above Greece’s. When the bond market loses faith in a political plan, the backlash is swift—and expensive.
Outside the U.S., the rest of the band seems off-key. Most European and Asian indices are retreating. The prospect of new tariffs and rising geopolitical friction isn’t helping. As for commodities, they’re unsure which rhythm to follow—demand remains subdued, while supply tries to adjust to shifting trade and energy policies.
So far, the market’s reaction to Trump’s return has been sharp—and surprisingly binary. But the real composition is still unwritten. And for three key reasons:
First, Trump’s only predictable trait is his unpredictability—something markets haven’t fully priced in. Second, even the most promising government plans need to prove themselves in execution. There’s always a gap between theory and action. And third, the reaction of global trade partners remains a big unknown. Will Europe, Asia, Canada stay silent this time around?
It’s unlikely. These regions have already felt the sting of tariffs—and the dynamics of global trade are more complex than they appear.
In the end, the harmony—or dissonance—between the lead singer and the chorus is where the real story unfolds. It’s within those tensions, adjustments, and missteps that the most compelling investment opportunities often emerge.
So let’s keep our ears sharp—and be ready to move when the next note drops