As Trump trade fades, investors reverse course

Developing doubt about administration's ability to deliver quickly on its agenda upends a strategy

The Trump trade is over. Get ready for “Trump Lite.” Developing doubt about the U.S. administration’s ability to deliver on its pro-growth policy agenda—at least any time soon—has upended a strategy that had been a winner since November’s U.S. election: sell bonds, buy the U.S. dollar and pick up cheap stocks that might benefit from improved U.S. growth.
 
That trade went into reverse in Tuesday’s U.S. trading: The S&P 500 fell 1.2%, its first decline of more than 1% this year and biggest drop since October, while the ICE U.S. dollar index, which tracks the dollar against a basket