whale-hunters
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Bullish
The United States' debt of 7 trillion dollars is the reason behind Trump's desire for a sharp stock market crash.
His strategic plan: stock market crash, bond market pump, and imposing interest rate cuts.
Let me explain -
The U.S. government needs to refinance 7 trillion dollars of debt over the next six months.
Trump cannot want to refinance it at the current 10-year yields, which is why he wants to drive the stock market to a sharp rise in bond prices.
As bond prices rise, yields will fall, and the U.S. government will be able to refinance its debt at lower interest rates. Not only that, but falling bond yields will push the Federal Reserve to cut interest rates, which is positive for high-risk assets.
There is no need to panic in the short term, and look at the bigger picture in the longer term. The bull market is not over yet, and a massive rise is coming.
#BotOrNot
His strategic plan: stock market crash, bond market pump, and imposing interest rate cuts.
Let me explain -
The U.S. government needs to refinance 7 trillion dollars of debt over the next six months.
Trump cannot want to refinance it at the current 10-year yields, which is why he wants to drive the stock market to a sharp rise in bond prices.
As bond prices rise, yields will fall, and the U.S. government will be able to refinance its debt at lower interest rates. Not only that, but falling bond yields will push the Federal Reserve to cut interest rates, which is positive for high-risk assets.
There is no need to panic in the short term, and look at the bigger picture in the longer term. The bull market is not over yet, and a massive rise is coming.
#BotOrNot
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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