Today is April 10, 2025.
Do not engage in contracts, focus on value investing in spot markets.
Yesterday's market conditions were worthy of the cryptocurrency industry.
It’s been a long time since I experienced a day with over ten points of increase; if you didn’t know better, you might think I was investing in A-shares.
Yesterday, Trump announced the suspension of reciprocal tariffs for dozens of countries.
Some people think Trump is acting erratically like a madman, but in reality, he is very wise and is the most difficult president for us.
First, why impose tariffs? What is the purpose?
I mentioned in my previous article that the purpose of imposing tariffs is to bring manufacturing back, and on the other hand, to increase unemployment to force the Federal Reserve to cut interest rates.
Imposing tariffs is definitely not a long-term solution because eventually, they must be reduced. The longer they are imposed, the greater the risk.
By taking this action, Trump has shown these enterprises and countries the determination of the Americans, while also providing a 90-day buffer for these enterprises to return to the U.S. This move was well executed, achieving its purpose while minimizing losses.
Secondly, does the suspension of tariffs not force the Federal Reserve to cut interest rates?
Although yesterday, Trump announced a 90-day suspension of reciprocal tariffs, the basic tariffs have not been suspended. The 10% that will be implemented on April 5 is still in effect, and the 25% on cars is also in place. For our country, it remains at 104%.
Overall, these enterprises will still be affected by tariffs, especially since the suspension of so many has little impact. Our country is the world's largest exporter, and its influence is the greatest.
Therefore, I believe that although there is a 90-day suspension of reciprocal tariffs against some countries, it will still force the Federal Reserve to cut interest rates in May. Even if there is no cut in May, it is certain in June.
If the market could rise yesterday, I have already analyzed everything in my previous articles. Everyone is worried about tariffs causing a sharp decline, but in reality, the true purpose of tariffs is to benefit the financial market.
If you only see the surface, you will think that the decline is caused by tariffs, and yesterday's rise is also due to the suspension of tariffs, leading you to fall into a trap.
Just like the market trend, if you don't understand the essence, you will be misled by short-term movements.
Just like the market fell yesterday, Ethereum broke a new low again, and many people said Ethereum would fall below $1,000, predicting another major drop for Ethereum.
This shows a complete misunderstanding of the market trend, failing to identify the strength of bulls and bears, always being influenced by the current trend.
In such a state, the ultimate outcome is to 'chase highs and kill lows.'
So, really, it’s not others who can change your fate, but yourself. Only by being willing to change can you truly alter your destiny; otherwise, no matter how much others say or understand, it won’t be yours.
Finally, I wish all readers a bountiful harvest in the super bull market of 2025!
Follow, every day there is a divine pill.