Why do liquidity funds, not Trump, set the market rhythm

In recent months, the market has been demonstrating interesting behavior: loud statements by Donald Trump about trade wars, currency policies, and the Fed have almost ceased to be the driving force behind prices. Instead of the expected crashes and reversals, something entirely different is happening. It turns out that this is not a lack of reaction, but a qualitative change in the very mechanism of price formation. Today, the market is dominated not by headlines of political news, but by capital flows through liquidity funds and algorithmic trading systems.

Market Evolution: From News to Algorithms and Money Flows

During Trump’s first presidential term (2016–2020), the picture was completely different. Every tweet or statement of his was perceived by the market as a potential signal to act. Uncertainty, the novelty effect, and insufficiently prepared trading systems made political rhetoric a powerful catalyst for movements. But over the years, a transformation has occurred — the market has simply adapted.

Today’s market is primarily a combination of algorithms, institutional investors, and funds operating based on a clear logic. They focus on interest rates, inflation indicators, monetary aggregates, and most importantly, on actual decisions made by politicians, not their promises. Trump’s words are heard, but actions are based on specific signed decrees and measurable changes in economic policy. As long as it remains just speech, real capital redistribution does not occur.

The Role of Liquidity Funds in Modern Trading Movements

Liquidity funds are the key players of the new order. They ensure the continuity of trading and at the same time determine its character. When a political comment triggers speculative interest, liquidity funds indeed activate the mechanism: short-term jumps occur, stop-losses are triggered, and sharp intraday movements happen. However, this is a shadow play. After a few hours, when speculative energy is exhausted, the price returns to its equilibrium level. This is not a trend development — it’s a gathering of sparse liquidity and a reshuffling of positions among traders.

Volatility Instead of Trends: Short-term Spikes Instead of Real Reversals

The key point: a politician cannot reverse the market with words alone. Stable price movements are formed as a result of cyclical fluctuations in the economy, changes in the money supply, and interest rates. Trump’s statements become not a market driver, but a source of short-term noise that machines and algorithms use for micro-earnings.

This does not mean that political statements should be completely ignored. However, building serious trading positions based on his speeches means siding with the crowd and losing perspective. Genuine movements occur where real money circulates through liquidity funds and macroeconomic factors are considered, not in the fields of comments and forecasts.

Conclusion: Trump’s behavior is just superficial noise on top of the fundamental movement of cash flows. A successful market participant distinguishes this difference between noise and signal.