Davos Debates: Trump's 'Wacko Trade' vs. Carney's 'Third Path' for Nations

• Donald Trump's presence at Davos sparked discussions, with his speeches highlighting an 'America First' stance and imposing tariffs.
• Canada's PM Mark Carney advocated for a 'third path' for middle powers, emphasizing diversified partnerships and strategic autonomy.
• Trump reacted strongly to Carney's speech, asserting Canada's dependence on the US and criticizing his lack of gratitude.
• The article introduces the 'Wacko Trade' concept: buying when Trump threatens and selling when he backs down, replacing the 'TACO' trade.
• Indian markets underperformed due to foreign portfolio investor selling, but the RBI Bulletin and PMI data show optimism for the economy.

Why It Matters: Davos saw a clash of ideologies between Trump's protectionism and Carney's call for diversified global partnerships.