US Federal Reserve

As Deutsche Bank's Alan Ruskin puts it, without getting too cute about it, "there are probably five defining stages for the “Trump trade”: Trading i) ‘the promise’; ii) the deal-making; iii) the enactment; iv) the economic impact, and, v) the payback."

Here are the details as market pscyhology shifts from phase 1 to stage 2, which DB says took place during last week's Trump press conference, and what markets can expect going forward.

The five stages of the Trump trade

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Extremes Become The Norm

European shares rose as Fiat rebounded on hopes concerns about parallel to Volkswagen are overblown, Asian stocks were little as Chinese shares fell to the lowest level of 2017 after poor export data, and U.S. equity-index futures rose ahead of a deluge of bank earnings. The dollar is headed for a weekly loss and gold trades at the highest price in almost two months.

By Robert Huebscher of Advisor Perspectives

Investors will confront excessive debt, high P/E levels and political uncertainty as they enter the Trump presidential era. In response, according to Jeffrey Gundlach, U.S.-centric portfolios should diversify globally.

While the Fed watchers have been obsessing in recent weeks about the pace and size of any upcoming Fed rate hikes, summarized best by Dallas Fed president Robert Kaplan who earlier today said:

• KAPLAN: AMONG BIGGEST DISAGREEMENTS AT FED IS ON HOW QUICKLY TO RAISE RATES

... and unexpected new buzzword emerged today, namely Fed balance sheet unwind when first Philly Fed's Steve Harker noted it in his speech earlier this morning...