Donald Trump’s second term as the 47th President of the United States has kicked off with a bang.
A lot of noise, a flurry of action, and plenty to unpack.
For investors, the key question isn’t just about politics—it’s about markets.
What does his return mean for your portfolio?
Let’s break it down into three parts: what he’s promised, the people around him, and how he governs.
Finally, what this all means for financial markets and your investments.
Trump’s made plenty of bold pledges, and he's wasted no time acting on many of them.
A huge deportation programme is underway, with Trump signing orders for "the largest deportation effort in American history".
A new travel ban.
Fast-tracking drilling and fracking.
Rolling back environmental rules and pulling the US out of the Paris Climate Agreement.
Tariffs on Mexico, Canada, and China.
Scrapping DEI policies and legally defining gender as strictly male or female.
Cutting government spending, top to bottom.
Big ideas. But promises are easy. Delivering is harder.
Take Ukraine. Trump vowed to end the war in 24 hours. That deadline came and went. The war continues. It’s a reminder that grand claims don’t always translate into reality.
And, as always with Trump, there’s a personal angle.
Just before taking office, he launched his own meme cryptocurrency—$TRUMP—now worth $6 billion. His presidency has always been about more than just politics.
‘Remain in Mexico’ policy reinstated, national emergency on southern border declared, birthright citizenship rescinded, Paris Climate Agreement withdrawal, World Health Organization withdrawal, January 6 pardons, TikTok ban 90 day delay, Gulf of America renamed, Mount McKinley renamed, criminal cartels branded Foreign Terrorist Organisations, refugee resettlement, oil and natural gas production sped up, tariffs on Canada, Mexico, China, federal hiring freeze, Diversity, Equity, and Inclusion (DEI) rollback, LGBTQ+ protections rollback, border wall construction, energy projects on federal land, foreign aid pause, binary definition of sex, Federal employees to work in office.
Trump’s team is a mix of MAGA loyalists and high-profile names.
Marco Rubio is Secretary of State.
Fox News’ Pete Hegseth is running Defence.
Pam Bondi is Attorney General.
Elon Musk has been brought in to slash government waste.
Robert F. Kennedy Jr., a vaccine sceptic and anti-processed food campaigner, is in charge of health.
One thing’s certain: Trump demands loyalty. Step out of line and you’re out. His first term showed that.
As Katty Kay and Anthony Scaramucci (who lasted just ten days as Trump’s Communications Director) joked on The Rest is Politics US, his administration could resemble a schoolyard scrap.
For those who’ve read or seen Hillary Mantel’s Wolf Hall, there are echoes of Henry VIII’s court. A mix of influence, scheming, and sudden downfalls.
His removal of those who fail to deliver or remain loyal can lead to sudden and dramatic policy and personnel changes.
Watch this space.
Trump’s style hasn’t changed.
His book, The Art of the Deal (actually ghost written by Tony Schwartz), also provides some clues to his approach.
This includes thinking big (making Canada the 51st state, annexing Greenland and taking back the Panama Canal for example)…
Maximising his options to keep opponents guessing, starting out with maximal positions (touted 60% tariffs on Chinese goods) and fighting back by doubling down, as seen over the past year during his court cases.
Some of his tactics work.
His NATO threats in his first term forced European allies to up their defence spending. Expect more of the same—chaos and coercion are just how he operates.
The flurry of executive orders on Day 1, from reinstating the ‘Remain in Mexico’ policy to halting DEI programmes, shows he means business. Whether this translates into lasting change is another question entirely.
So, what does all this mean for investors?
When Trump was re-elected, US stocks jumped. The market saw his pro-business stance as a positive. But bond yields climbed too, hinting at fears of higher inflation, trade wars, and economic uncertainty.
The truth?
No one knows what happens next.
Markets react to new information in real time. And while politics can cause short-term swings, it rarely shifts the long-term trajectory of the stock market.
That’s because markets don’t run on politics. They run on businesses. Companies adapt, innovate, and grow regardless of who’s in charge. It’s been true under Democrats. It’s been true under Republicans.
And it’ll be true now.
Plenty of investors get caught up in elections, thinking the wrong leader will crash the economy or the right one will supercharge their portfolio.
History says otherwise.
Whether it’s tax cuts, tariffs, or trade wars, businesses find a way to adjust.
And over time, stock markets rise.
If history has taught us anything, it’s that economies and stock markets have a way of moving forward, no matter who is in the White House.
Elections bring noise, but markets thrive on fundamentals: corporate earnings, innovation, and productivity.
Politicians come and go, but great businesses keep growing. That’s why the long-term trend remains up.
As an investor, the best strategy remains the same.
Stay diversified. Hold quality investments. Tune out the short-term drama.
Because in the end, markets care far less about politics than most people think.
And the best way to protect your wealth?
Stick to your plan, ignore the noise, and let the market do what it’s always done—reward patient investors.
Image of Donald Trump is AI-generated, created using Ideogram