Do We Want a Bull Market? 3 Things Need to Happen, and Trump Is on the Right Track.
1. End the Ukraine-Russia War:
Markets don’t like wars. During conflicts, commodity prices rise. Investors tend to invest in defense companies as weapons manufacturing increases, raising stock prices.
2. Lower Inflation in the U.S.:
This allows the Federal Reserve (FED) to cut interest rates and print money. A short-term solution is to end the war, lift sanctions on Russia, and allow them to sell oil, lowering global oil prices and reducing U.S. inflation.
3. Induce a Recession:
Trump plans to cut government spending, lay off federal employees, and raise tariffs. During a recession, people spend less, businesses cut investments, and the economy cools. The FED stimulates this with lower rates and money printing.
Why Does Trump Need This?
The U.S. short-term debt is at historic highs. To pay it off, the government needs to finance new debt at lower rates to cover maturing debt and push new maturities further. This is called ROLLING OVER.
When there’s a weak dollar and liquidity, investors look for riskier assets (cryptos, emerging market bonds, etc.). If Trump succeeds, markets will initially fall due to uncertainty, but big players use this to push out small investors. Once interest rates drop, markets will rise, and many who stayed out of the market will rush to join, getting trapped at the peak.
Conclusion:
This is what’s happening, and the markets are waiting for it. If all goes as planned, a bull market will start, but be careful not to get trapped at the wrong moment. $BTC $ETH $XRP #SOL #SUI #ADA #NEAR