Isn't scare mongering a common way to prevent risk? Usually if the future seems bleak, don't traders adjust their behavior and investments to avoid loss? As l

Isn't scare mongering a common way to prevent risk? Usually if the future seems bleak, don't traders adjust their behavior and investments to avoid loss? As long as finance is scared, it seems that a recession cannot happen. Of course some might get frustrated and find that they are unable to expand their business, and break through barriers, and lobby against regulations. I wonder how wall Street is behaving since Trump's election, and if risky policy is being put in place, and if wall Street is being cautious.