On August 8, U.S. President Trump posted a thought-provoking message on social media:
Tariffs are having a tremendous positive impact on the U.S. stock market, hitting new highs almost every day. Hundreds of billions of dollars are flowing into the U.S. Treasury.
But he followed up with a statement that made the market anxious:
If the court makes an unfavorable ruling against him at this time, it could disrupt the largest scale of capital and wealth creation in U.S. history, potentially repeating the Great Depression of 1929.
What signal does this statement send?
- - Short-term positivity: Trump emphasizes the positive effects of tariffs, which could be good news for sectors like U.S. manufacturing and domestic energy, boosting market sentiment.
- - Hidden worries: Linking economic performance with personal legal cases suggests—if political issues arise, the economy could face shocks.
- - Potential risks: If the political situation changes, the market could quickly enter risk-off mode, with more attention on gold and U.S. Treasuries.
In summary: Trump is giving the market a morale boost while also planting a seed of caution—"If things don't go my way, the market could face serious issues."
