That’s wishful thinking, they haven’t even reached their 2% target (unlike EU) and that’s before the inflation bump due to tariffs.
Things might be different once Powell is out next year, but people are starting to be worried about that too (in particular whether the US will keep providing swap lines to the main partner central banks which is critical to avoid financial meltdown in time of market stress).
If you are looking for a plan, this is the one & this source to try to understand the thinking amongst top folks in White House
I don’t know if Trump himself believes in this plan but I would let you figure it out. However this might give you insights into what could be the possible logic behind all this chaos.
For me -: I don’t care what the plan is. I care what the actions are. And it’s clear US has too much leverage over rest of the world (security, digital & trade) and all I hope for is that countries like EU, Japan, Canada , Switzerland etc derisk their dependence on US over next 10 years. This time they would get bullied and maybe would not be able to do much or stand up like China. But they should learn a lesson. China prepared for this for last 5 years and is showing the world how superpower works & behaves.
Yes it would and it will be. I don’t care too much about the reasons, not for the bear market not for the bull run after. I just trade it.
This is my 10th bear market, I invest in stocks since the early 80s. It is the 4th time I use my “crash recovery strategy”. This is kind of the bad bad market timing, so it is discussed in the market timing thread.
BTW: on every bear market everybody said “this time it is different”. Guess what: it never was!
So the thing about loosing trust on the US may be relative. People are panicking now because of Trump umpredictabillity and the obvious market outlooks but I would say that people also forget very quickly, specially when things are going well. If at some point there is a bull run again people will start getting back into the US stock market without hesitation… Not everyone of course but people goes where the opportunities are I guess, whether that is china, US or wathever country.
Germany is planning to take their gold back to German soil.
But at the same time China is planning to ban import of American movies, so maybe this whole thing will get to a suddenly stop. Don’t f. with the mouse, you know
I deposited cash into my 3a yesterday. It will take a day or 2 before it is invested, so expect a big bounce in the stock markets today! You’re welcome.
Market participants may be panicking but it doesn’t feel to me world leaders are. Their answers seem to make strategical sense to me and it feels to me like they don’t feel like they have much choice but decoupling from the USA.
Trust is a hard thing to conquer once it’s been lost and future investors may be looking at different numbers when looking at the expected future profits of US companies years away from now.
That being said, confirmaton bia can be very deceptive and I’ve been looking for signs of other countries stepping up so I am biased and may very well be wrong.
Yes, makes sense too. I actually agree with the argument that expected future US profits will be low but I am trying to challenge myself to see arguments for the opposite as well.
For sure there are two distinguishible things, people trusts towards US and leader trust toward the US. Markets are being lead by people (pro and no-pro investors)
Leaders know -or should know- the rules of the game, regular people (including investors) don’t. Regular people is highly influenced by media & mainstrem opinion so there is a gap between what happens and how it is perceived and this have big consequences in the stock market. In turn, for leaders is a matter os geopolitical strategy to get eventually the decoupling from the US but we are far from there in my opinion.
USA will be bankrupt if they apply this… How the hell will their companies finance and invest in new goods to product locally and to sell goods to their own citizens? Trump is just a crazy retarded human being…
I don’t understand how the hell the world is not making deals with others country or why they don’t apply tariffs on US SERVICES for instance… I hate these people who vote for this insane guys… Poor America…
“The entire administration has always said that President Trump is willing to pick up the phone and talk. And the president met with his trade team this morning, and he directed them to have tailor-made trade deals with each and every country that calls up this administration to strike a deal,” Leavitt told reporters at the White House press briefing.
Trump will have to cut tariffs in one way or another, so I think deals will be made.
He can’t get his factories without the deals. Nobody is going to set up factories until the situation becomes more clear. Nobody can afford to set up a factory if the machines they need to buy to operate it are going to be tariffed at 104%.
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