Tariffs, TACOs, and dollars: global markets in a year of Trump 2.0

Market Reactions to Trump's Presidency - Global financial markets have experienced significant volatility and uncertainty since Donald Trump's election, with stocks, gold, and cryptocurrencies reaching record highs [1] - The U.S. dollar initially surged post-election due to expectations of increased spending but has since lost 4% in value [4] - Trump's tariffs and geopolitical tensions have led to a rise in alternative investments, with Bitcoin hitting a record high of $125,835.92 and gold reaching $4,381 per ounce [5] Stock Market Performance - Stock markets globally have achieved record highs, driven by enthusiasm for artificial intelligence and expectations of lower global interest rates [7] - The MSCI World Index experienced a 10% drop following Trump's "Liberation Day" tariff announcement but has since rebounded, gaining over 20% since Election Day [7] - The S&P 500 has increased by 17% since last November, influenced by AI trends, while European defense stocks have surged due to increased government spending on security amid ongoing geopolitical conflicts [8]