Policy Expectations: Deregulation on Steroids
Trump's first term showed he moves fast on Day One, and the market is pricing a repeat performance. Early priorities: rolling back Biden-era rules on energy, environment, finance, and tech oversight.
Energy dominates the narrative — "drill baby drill" means streamlined permitting, expanded drilling leases, and a rethink of LNG export restrictions.
Broader deregulation is the bigger theme. Expect swift action on dismantling parts of the CFPB, easing Dodd-Frank stress tests, and pausing antitrust aggression against Big Tech deals.
Crypto: From Hostility to Embrace
Crypto has been the standout performer, with Bitcoin pushing firmly above $80,000. Trump campaigned hard on making the U.S. the "crypto capital of the world."
Early indications point to replacing SEC Chair Gensler, clarifying digital asset rules via legislation (FIT21), and potentially creating a crypto advisory council.
The hopes are concrete: SAB 121 rescinded, clearer paths for spot ETFs, and an end to enforcement-by-headline.
Traditional Finance Positioning
Wall Street is salivating over deregulation prospects. Banks are pricing in higher net interest margins, looser capital requirements, and reduced compliance costs.
Goldman, JPMorgan, and Morgan Stanley have led the financial sector's outperformance, but the real torque is in regionals and specialty lenders.
M&A activity should pick up meaningfully without aggressive DOJ/FTC blockers.
Bottom Line
Inauguration Day crystallized the Trump 2.0 trade: aggressive deregulation, pro-growth fiscal policy, and a welcoming stance on innovation.
We're staying aggressively positioned in the deregulation winners — crypto exposure heavy, financials and energy selective adds on any weakness. This cycle still has legs.