Bonds bet on little change and no trade wars.

The bond traders on Wall Street have given careful consideration to Trump and what his future presidency will be like and they have arrived at a conclusions.  According to them, Americans can stop protesting and get back to their lives. Essentially the bond traders are the police officers at the scene of a crime or accident waving off the public while stating “nothing to see folks, keep it moving.” Bond traders have made the conclusion that Trump will not significantly break anything major and will not upset trade or enter into any trade wars.

“It has taken markets just four days to price in four years of President Donald Trump. The verdict of investors isn’t just clear, but comes with a remarkable degree of certainty: more inflation, a little more growth, and no nasties such as a damaging trade war or a diplomatic disaster.”

The belief is that Trump will not “drain the swamp” as he promised, but will instead take a dip himself. The bond markets are betting on his administration to continue to bring Washington insiders despite his promises to clean house.

“The boost from a market-friendly president-elect may run a while yet if Mr. Trump fills out his transition team with mainstream Republicans, to follow the weekend appointment as chief of staff of Reince Priebus.”

However, these bets maybe too optimistic on the foreign affairs side. With Russia and China looking to expand their spheres of influence and Trump giving serious consideration to the not so recently unhinged Rudy Giuliani as his Secretary of State, the future may not be as smooth as the optimistic bond market is betting on.