Crypto-Lions
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🇺🇸 The debt of US$ 7 trillion of the US is the reason
why Trump wants the stock market to crash hard.
his manual: Break the stocks, inflate the bond market, and force rate cuts.
Let me explain -
The US government has to refinance
US$ 7 trillion in debt in the next 6 months.
There is no way TRUMP wants to
refinance it at the current 10-year yields
so that’s why he wants the stock market to inflate bond prices.
As bond prices rise, yields
fall and the US government
will be able to refinance its debt at a
cheap rate. Not only that, lower bond yields will also lead the Fed to make rate cuts, which is optimistic for risk assets.
Don’t panic in the short term and
look at the bigger picture. The bull market
is not over, the mega pump is still to come.
Note: this text is not mine :
I am posting it here because I found the reasoning brilliant.
👉Follow Me
why Trump wants the stock market to crash hard.
his manual: Break the stocks, inflate the bond market, and force rate cuts.
Let me explain -
The US government has to refinance
US$ 7 trillion in debt in the next 6 months.
There is no way TRUMP wants to
refinance it at the current 10-year yields
so that’s why he wants the stock market to inflate bond prices.
As bond prices rise, yields
fall and the US government
will be able to refinance its debt at a
cheap rate. Not only that, lower bond yields will also lead the Fed to make rate cuts, which is optimistic for risk assets.
Don’t panic in the short term and
look at the bigger picture. The bull market
is not over, the mega pump is still to come.
Note: this text is not mine :
I am posting it here because I found the reasoning brilliant.
👉Follow Me
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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