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March 9, 2025

Billy Yang

● US Stocks: Reason for Concern

This blog post covers important economic outlook topics such as the U.S. 10-year Treasury yield surge, concerns about economic recession, tariff and trade policies, and investment strategies based on historical patterns.

[1] U.S. Monetary Policy and Interest Rate Outlook

In the U.S., attention is focused on the Federal Reserve’s remarks about controlling the 10-year Treasury yield surge instead of discussing benchmark interest rates.
The market views this as a key variable that will determine the direction of the U.S. stock market and global financial markets.
Based on recently released data and Trump’s statements, it is time to reassess investment strategies as volatility is expected in the interest rate outlook and the U.S. bond market.
U.S. interest rate policy is becoming an essential keyword for those interested in economic forecasts and investment strategies.

[2] Possibility of U.S. Economic Recession and Trump’s Policies

If a U.S. economic recession suddenly occurs, it could have repercussions throughout the economy.
The Trump administration aims to restore industrial competitiveness through the use of tariffs, tax cuts, and deregulation, focusing on improving the trade balance.
In addition, policy changes by the 100-day policy deadline and the end of the second quarter are acting as factors that increase short-term uncertainty.
As the high valuation of the U.S. stock market combines with poor consumer sentiment indicators, it is time for investors to carefully examine the U.S. stock market and global financial markets.

[3] Lessons and Comparisons from Historical Patterns

Comparing the economic situations of the Great Depression in the 1930s and the Nixon Shock in the 1970s, we analyze that policies are being implemented under different conditions than in the past.
From past experience, tariffs and trade policies may contribute to the recovery of industrial capabilities in the U.S. in the long term, even if they cause short-term shocks.
These historical comparisons help investors develop long-term investment strategies without being swayed by short-term fluctuations.

[4] Korean Stock Market and Domestic Investment Strategies

Considering overseas policy changes, expectations for U.S. interest rate cuts, and the strength of the Korean won against the Japanese yen, the Korean stock market also requires careful choices amid volatility.
As liquidity increases in undervalued value stocks, long-term profit opportunities are being captured.
In particular, as domestic and overseas investors turn their eyes to re-evaluating Korean assets, it is necessary to be wary of emotional investments and adopt a prudent value check and diversification strategy.
It is necessary to closely examine the situation of the U.S. stock market and the overall global financial situation, including ‘investment strategy’, one of the key keywords of investment strategy.

[5] Future Prospects and Conclusions

The U.S. is likely to continue using 10-year Treasury yield control, tariffs, and trade policies to stimulate the economy.
However, even amid these policy changes, the risk of a sudden economic recession remains, and investors must prepare for market volatility.
Those who prefer long-term investment need a strategy of thoroughly reviewing the valuation and financial stability of companies without being swayed by short-term adjustments.
In conclusion, investment strategies based on carefulness of choice will become more important in the future in the context of U.S. interest rate outlook, trade policy changes, and global financial market adjustments.

< Summary >

The U.S. is focusing on controlling the 10-year Treasury yield surge instead of discussing the Federal Reserve’s benchmark interest rates, and the possibility of an economic recession and Trump’s tariff and trade policy changes are having a major impact on global finance and the U.S. stock market. Compared to historical patterns, there is a possibility of industrial capacity recovery after short-term adjustments, and the Korean stock market also requires value stock selection and careful investment strategies. It is important to have a long-term perspective amid volatility, focusing on economic forecasts, the U.S. stock market, interest rate outlook, investment strategies, and global financial keywords.

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● US Stocks: Reason for Concern This blog post covers important economic outlook topics such as the U.S. 10-year Treasury yield surge, concerns about economic recession, tariff and trade policies, and investment strategies based on historical patterns. [1] U.S. Monetary Policy and Interest Rate Outlook In the U.S., attention is focused on the Federal…