Part of that adaptation has involved leaning into Trumpโs need to be admired or employing a kind of vernacular previously unheard in diplomatic discussions.
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NATO Secretary-General Mark Rutteโs reference to Trump as the worldโs โdaddyโ after the president used the F-bomb to describe the misbehavior of Iran and Israel is a case in point.
And it worked a treat. Trumpโs response was to say of Rutte, โI think he likes me. If he doesnโt, Iโll let you know. Iโll come back and Iโll hit him hard, OK? He did, he did it very affectionately, Daddy, youโre my daddy.โ
Trump employed the same tactics in his trade deals that we would see in an auction โ never divulging what the right price or the right outcome looks like.
The markets have learnt to discount Trumpโs ambit positions and recognise that he tends to take us to the cliff before walking back.
They appear to have been collectively dosed with Valium โ ironing out some of the extreme fear-based volatility that took hold, particularly in April.
President Donald Trump meets NATO Secretary General Mark Rutte.Credit: AP
In April, investment houses were busy dreaming up new acronyms for trading in Trump-infested markets such as MEGA or Make Europe Great Again โ a reference to the flow of investment moving away from the US.
While FAFO (F–k Around and Find Out) was reported by Reuters to be frequently heard in trading desk conversations to describe the financial marketโs volatility and chaos that Trumpโs policymaking process has created.
Trading analogies like being caught in a pinball machine was another that gained a lot of currency during Trumpโs early policy jolts.
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But the investment bank bosses and hedge fund titans that predicted financial Armageddon a few months back have gone quiet. The short sellers have retreated to lick their wounds.
None of this means that the remainder of Trumpโs term wonโt be punctuated with shocks, or to say that his policies wonโt have a negative slow-burn effect on the US and other world economies.
Economists remain wary of slowing growth and the potential for Trumpโs tariffs to re-stoke inflation โ both of which could burst the current market euphoria.
But world leaders and markets are adapting to Trumpโs playbook โ they are learning the dilution ratio of initial stated policy to ultimate agreement.
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