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● Trump’s Delay Tactics, Mayhem Ahead?

Analysis of Stock Market Crash and Interest Rate Cut Scenarios According to Trump’s Strategy

Trump’s Intentions and Stock Market Crash Trends

Recently, in a video shared by Trump on his social media, the title “Trump is intentionally crashing the stock market” is noticeable.
This video goes beyond simply conveying opinions, giving the impression that it is having a significant impact on the current US stock market and the economy as a whole.
It is suggested that Trump is intentionally shaking the stock market in the short term, undermining investor sentiment, and inducing the risk of forced liquidation (B2 liquidation) for banks and institutional investors through the stock market crash.
This phenomenon maximizes the volatility of the US stock market, with transaction speeds similar to those during the Great Depression, the financial crisis, and the COVID-19 pandemic.

Importance of Interest Rates and the Bond Market

The Trump video focuses on the bond market, which is much larger than the stock market.
Currently, as investors avoid bonds in the high-interest-rate environment, bond prices are plummeting, which could ultimately lead to interest rate cuts.
Trump intends to drive investors to US Treasuries, a safe asset, through the stock market crash, and as bond demand increases, interest rates will conversely fall.
In other words, interest rate cuts can be interpreted not as a simple financial measure but as an essential means of stabilizing the bond market.

B2 Liquidation, Leverage Investment, and Liquidity Crunch

The sharp stock market decline is hitting leverage investors hard.
Due to B2 liquidation, i.e., margin calls, investors who have made investments by borrowing money are facing forced liquidation as they receive additional margin requirements from securities firms.
This raises concerns that a liquidity crunch will occur, leading to short-term funding difficulties.
If rapid selling pressure and securities firms’ moves to recover funds are triggered, the risk could spread throughout the financial system.

Fed’s Guidance on Interest Rate Cuts and Economic Outlook

Trump’s current strategy and the stock market crash may cause the Fed to react urgently at the May 7 interest rate decision.
If market shocks and credit crunch risks increase, the Fed will have no choice but to stabilize the economy through measures such as interest rate cuts.
Like the White House Economic Council Chairman’s remarks, the first-half GDP shock and consecutive stock market crashes may ultimately be a prelude to a rebound in the second half.
Even if short-term economic recession and consumption slowdown occur in this process, there is a possibility that it will enter a recovery phase in the medium to long term.

Future Investment Strategies and Stock Selection Advice

In the current situation of high volatility and rapid fluctuations, it is advisable for investors to adopt a more cautious dollar-cost averaging strategy.
In particular, leveraged stocks and high-risk investment products require caution as the risk of absolute loss is high.
Not only individual investors but also institutional investors are focusing on securing cash and managing risk, and a strategic revision based on the long-term upward trend is required.
It is necessary to reorganize the investment plan while closely monitoring the latest trends, focusing on core SEO keywords such as ‘Trump’, ‘interest rates’, ‘bond market’, ‘leverage’, and ‘US stock market’ across the economy.

< Summary >

As Trump reveals his intention and purpose of the stock market crash through his social media, the possibility of stimulating the US bond market and inducing interest rate cuts has increased.
The rapid stock market decline is causing B2 liquidation and liquidity crunch among leverage investors, creating an environment in which the Fed can cut interest rates in May.
Investors need to seek stable investment strategies such as dollar-cost averaging in a highly volatile market environment and keep in mind the possibility of medium- to long-term recovery beyond the short-term recession.

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Leverage Investment Caution

*YouTube Source: [소수몽키]

– 트럼프의 시간끌기 전략 5월까지 이어진다? 미 증시 고변동 장세 이어질까