After serious trouble emerged in the US bond markets, Trump did what all politicians do all the time – lie to the world that there will be a deal, and he will lower tariff against China, etc. The Mag 7 stocks overall gave the impression that things are not going that bad so far. Hence we got a magically lift 4 days in a row in the US stock market.
Is the stock market correction over? Maybe. Is the real crash coming? Maybe.
This is a event driven market environment – so far the way things are unfolding is not stable. The focus on tariff being the reason for the selloff, is a lie. The real reason has always been the infinite printing by Bank of Japan that allowed the Yen Carry Trade to happen for over 15 years is now being cornered again like July 2024. Last time the central banks managed to stop the bleeding by extreme measures. This time, however, it does not look like the central banks can do anything at all.
Here is a better summary of what we are dealing with at this point. Of course, there is always something else to be bullish on.
Instead of listening to the FURUs, why not listening to these two wise men on their takes of the current US-China trade war. Their takes can surprise many China haters.
Another very busy week ahead …
Have a great weekend all!
