Trump Ramps Up Efforts Ahead of US Midterm Elections, Triggering Policy Uncertainty, US Stocks Face Unprecedented Policy Risk

BlockBeats News, January 14th, Ed Clissold, Chief U.S. Strategist at Ned Davis Research, plans to coin a new term — Big MAC Trade, where MAC stands for "Big Midterms Are Coming." With this concept, he aims to encapsulate what he sees as the core theme of the U.S. stock market in 2026: the policy direction around and after this year's fall congressional elections and its impact.

U.S. President Trump began the year with a series of policy-like statements, indicating that Trump is focusing on boosting the Republican Party's chances in the November elections, with policy levers aimed at America's much-debated "affordability crisis." This trend's impact on the stock market could be profound. Take last week's market performance, for example, Trump requested credit card issuers to cap the interest rate at 10% — a level that is less than half of the current average rate, leading bank stocks to plummet; he ordered defense companies to halt dividend payouts and redirect funds to production, causing a significant drop in the defense sector; and following recent government attacks on the Fed's independence, Wall Street was engulfed in panic on Monday.

Clissold wrote in the report, "Ahead of the midterm elections, policy adjustments targeting specific industries will pose a significant risk," and the market is currently unclear on how to hedge against such risks. (Jinshi)