The reasoning seems to make sense and the market timing supports it: for now we are facing a controlled shock. If the game doesn't get out of hand...
Post
Thon88
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Crypto Market Set to Resume Rally 🇺🇸
The US’s $7 trillion debt is the reason Trump wants the stock market to crash.
His playbook: Crash stocks, inflate the bond market, and force rate cuts. Let me explain - The US government has to refinance $7 trillion in debt in the next 6 months. There’s no way TRUMP wants to refinance the current 10-year yield so that’s why he wants the stock market to inflate bond prices.
As bond prices rise, yields will fall and the US government will be able to refinance its debt at a cheap rate. Not only that, lower bond yields will also prompt the Fed to cut rates, which is bullish for risk assets. Don’t panic in the short term and look at the longer picture. The bull market is not over, the mega pump is yet to come. Note: this text is not mine: I am posting it here because I thought the reasoning was brilliant.
The US’s $7 trillion debt is the reason Trump wants the stock market to crash.
His playbook: Crash stocks, inflate the bond market, and force rate cuts. Let me explain - The US government has to refinance $7 trillion in debt in the next 6 months. There’s no way TRUMP wants to refinance the current 10-year yield so that’s why he wants the stock market to inflate bond prices.
As bond prices rise, yields will fall and the US government will be able to refinance its debt at a cheap rate. Not only that, lower bond yields will also prompt the Fed to cut rates, which is bullish for risk assets. Don’t panic in the short term and look at the longer picture. The bull market is not over, the mega pump is yet to come. Note: this text is not mine: I am posting it here because I thought the reasoning was brilliant.
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