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Is Trump Put Still There?

FUNDA·March 13, 2025

Trump 'put' shifts to bonds—expect softer US stocks, outflows to RoW; buy-the-dip less effective near term.

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In recent weeks, macroeconomic forces have exerted a far greater influence on equity markets than fundamental factors. This divergence prompts us to share our medium-term perspectives and observed structural shifts reshaping market dynamics

The recent sharp correction in the US equities could be attributed to many different catalysts. From the macro perspective, we have -

1. Growth scare/recession fear (key concern at the moment)

  • DOGE affecting government spending

  • Government shutdown risk

  • Illegal immigrants leaving the labor market

2. Inflation risk

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