The United States has long faced a huge trade deficit,

its fundamental cause is actually related to the "overly strong dollar."

A strong exchange rate is inherently unfavorable for exports,

because

exchange rate appreciation = export product prices become more expensive → exports decline

exchange rate appreciation = imported goods become cheaper → imports rise

The result is: the trade deficit continues to expand.

But interestingly,

the dollars earned by these exporting countries often flow back to the US market,

investing in US stocks, US bonds, and other assets, further strengthening the global status of the dollar,

forming a cycle of "dollar remains strong → trade deficit worsens → funds flow back again."

So, if Trump really wants to reduce the trade deficit, what should he do?

Actually, the only effective way is to: let the dollar depreciate.

But here comes the problem,

dollar depreciation → attractiveness of US assets declines → capital outflow → shaking the foundation of dollar hegemony.

Moreover, due to tariff policies,

exporting countries may lower the exchange rate to reduce the impact of tariffs,

leading to the dollar not only not weakening, but rather strengthening.

So how to solve this?

I don't know,

it's a battle between Trump's left and right brain.

As for operations,

today many group friends are also asking what to do next.

My view is to keep at least 60% cash reserves.

In an unstable situation, it is better to earn less,

than to risk bankruptcy.

Maintain a wait-and-see approach, waiting for clearer signals.