The article discusses the evolution of Donald Trump's public persona and behavior from his early presidential campaign to current times, particularly relating to his tariff announcements. Initially seen as a direct pandering to Hispanic voters, Trump's approach has morphed into a pattern of blustering threats that investors have learned to exploit. As a result, market reactions to his tariff declarations have shifted, with investors recognizing these threats as often empty, leading them to buy during market dips caused by Trump’s announcements of tariffs.
Markets have tended to go down when Trump announces new tariffs, but investors have recognized that a lot of this is bluffing, so they're buying the dip and then profiting off the inevitable rally.
The reaction demonstrates that the traders are right, because—to mix zoological metaphors—a hit dog will holler. The White House keeps talking tough about levying new tariffs on friends and geopolitical rivals alike.
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