Hours before President Trump stopped his world rate war on Wednesday, he had a message for investors in social networks: “This is a good time to buy!”
He was right: the news of a pause in reciprocal rates sent the Dow to increase almost 3000 points that day. But a day later, a third of those profits was erased, since it sank into the fact that the taxes of 10% remain worldwide and the fears of global recession persist.
So how are you now? Is it a good time to buy or sell?
As readers of this column know, Wall Street executives and money administrators have been pointing out for weeks that all seem to reduce trade agreements.
They said that the market pressures, particularly the bond market, would be the catalyst of their global bond buyers that become or hate the uncertainty of the fees, and will resist buying the debt that finances our government.
They also predicted that Trump would put aside his auxiliary advisors, Peter Navarro and Commerce Secretary Howard Lutnick, and would rely on his very capable Treasury Secretary, Scott Besent, who wanted Trump to do what he does, these better and cut deals.
This is what they tell me now. Despite all the initial enthusiasm for the commercial pause, there are significant underlying problems in this market that are not so fast. That is why after Wednesday’s demonstration he had that great setback on Thursday. Yes, there are some actions of large companies defeated by tariff tantrums that seem cheap, but in general the market seems robbery.
To support their thesis, these investors have recently been calling a man named George Soros, a famous investor who turned out to be a lousy social activist. Soros explained his theories about games markets in his innovative book, “The alchemy of finance; reading the mind of the market.”
It should be noted that Soros on his way to make billions of global basis, coins and products, employed the guy who got President Trump backward his tariff positions: the secretary of the Treasury, Scott Besent. Therefore, presumable, Besent would agree with what my sources say that I use Soros as his guide to the current market. As Soros writes, the underlying fissures in the market remain inactive until an event crystallizes the disagreement of the market.
The event could be anything: a terrorist attack, a government closure, a tariff war, but the event means somewhat less than those underlying fissures to light the flock to change or lower it.
Trump’s tariff pause could provide a short -term relief to market concern for the perceived impact of the commercial war on corporate profits and actions prices, but in reality it does not address most of the remaining cracks.
Even before the rates, the actions seemed tunics for traditional measures, such as the price profits of 12 months well above the historical average. The United States sold massive amounts of debt to foreigners who steal the economy of investing dollars, essentially sending money abroad in the form of interest payments.
Yes, say what you want about Trump’s Sleedhammer’s trade approach, but inherited those underlying conerns. It is no coincidence that Tuesday’s bond market seems to be the catalyst for Trump’s decision to reach the pause button.
None of these underlying problems will disappear in the short term, we get another fainting of the market that collapses the valuations. It would be good if Trump’s tax cuts and deregulation stimulate significantly economic growth to pay $ 36 billion on loans.
For now, however, buyers are careful.