/
© 2026 RiffOn. All rights reserved.
  1. Thoughts on the Market
  2. Pricing in Trump’s Speech at Davos
Pricing in Trump’s Speech at Davos

Pricing in Trump’s Speech at Davos

Thoughts on the Market · Jan 22, 2026

Trump's Davos speech calms markets by de-escalating U.S.-EU tensions, while proposed domestic affordability policies face high hurdles.

Presidential Housing Proposals Face Major Procedural Hurdles in Congress

Presidential proposals on housing affordability, like capping institutional ownership, are constrained by more than just politics. Procedural rules in Congress, such as the requirement for budget reconciliation bills to have a significant fiscal impact, can render such initiatives non-permissible, severely limiting the executive's ability to enact them.

Pricing in Trump’s Speech at Davos thumbnail

Pricing in Trump’s Speech at Davos

Thoughts on the Market·a month ago

Capping Credit Card Interest Rates Harms Consumers by Limiting Credit Access

A proposed 10% cap on credit card interest rates, while intended to improve affordability, would likely have the opposite effect. This policy would probably force lenders to tighten credit standards to offset lower profitability, ultimately restricting credit access for the very subprime consumers and balance-carriers it aims to help.

Pricing in Trump’s Speech at Davos thumbnail

Pricing in Trump’s Speech at Davos

Thoughts on the Market·a month ago

Trump's Greenland De-escalation Rapidly Unwound Risk-Off Market Trades

Investors feared a US-EU rupture over a Greenland acquisition attempt, pricing in risk. When Trump's speech signaled de-escalation by ruling out force, markets immediately reversed risk-off trends (e.g., equity weakness, weaker dollar). This demonstrates high market sensitivity to geopolitical rhetoric, allowing for a rapid repricing of tail risks.

Pricing in Trump’s Speech at Davos thumbnail

Pricing in Trump’s Speech at Davos

Thoughts on the Market·a month ago