Nouriel Roubini, an economist, is preparing for a potential increase in yields on long-dated US bonds due to the implications of Donald Trump's policy agenda.
This includes support for looser monetary policy and increased tariffs, which could impact price stability in the economy.
Roubini is recommending a strategy in the Treasuries market where the difference between long- and short-dated yields is expected to widen.
This approach, often referred to as the "Trump trade," is expected to benefit from upcoming interest-rate cuts as investors adapt to the changing economic landscape.